Majority of Fed Banks Voted Against December Change to ...

Majority of Fed banks voted against December change to ...

Fed Bank Directors Disagreed on December Rate Cut

Minutes from the Federal Reserve’s discount rate meetings reveal that a majority of regional bank directors initially opposed the interest rate cut implemented last December. Directors at eight of the twelve regional Federal Reserve banks voted to maintain the existing discount rate, the rate charged to commercial banks for emergency loans. This occurred ahead of the Fed’s December 9-10 meeting where policymakers ultimately decided, in a 9-3 vot…