(Bloomberg) -- Directors at two of the Federal Reserve’s 12 regional branches favored a 100 basis-point increase in the discount rate interest rates in July, minutes of discount-rate meetings show.
The boards of the St. Louis and Minneapolis banks voted for a bigger move on July 14, the Fed said in a statement released Tuesday. A day earlier, a report showed the US inflation rate jumped to a fresh four-decade high in the prior month.
Policy makers on the Federal Open Market Committee voted unanimously on July 27 to lift the target for their benchmark federal funds rate by 75 basis points to a range of 2.25% to 2.5%. The Fed Board also raised the discount rate by the same amount to 2.5%. The discount rate governs the cost of borrowing for banks from the Fed’s discount window.
Directors at nine of the regional banks had voted for a 75 basis point increase in the discount rate by the time of the July 27 meeting, while Kansas City Fed directors sought a 50 basis point rise.
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