Fed's Discount rate meeting minutes from June 4 showed an even split
Fed's Discount rate meeting minutes from June 4 showed an even split of the 12 banks with respect to the primary credit rate. Six banks wanted to keep the current primary credit rate unchanged, while six wanted an increase. No change was made at that time. Those opting to hold the rate steady at 2.25% were Atlanta, San Francisco, New York, Philadelphia, Chicago, and St Louis. Note that those District banks are largely led by presidents who are on the dovish side of the spectrum. The banks arguing for a 25 bp increase were Cleveland, Kansas City, Dallas, Boston, Richmond, and Minneapolis. Those banks, with the exception of Minneapolis, typically have hawkish bents. Interestingly though, is Kashkari from Minneapolis, is one of the most dovish on the FOMC. Overall the directors were generally positive in their economic outlooks. There was some mention of increasing wage pressures. And some expressed concerns over international developments. However, the FOMC and Board did vote on June 13 for a 25 bp increase in the funds rate and primary credit rate.