Dallas, Kansas City Feds Backed Higher Discount Rate

Directors at two Federal Reserve district banks renewed their calls for an increase in the rate charged on direct loans to banks, while one bank pulled back from such a stance, according to minutes of Board of Governors meetings last month.

Fed banks in Dallas and Kansas City called for an increase in the so-called discount rate by a quarter-point to 1 percent, according to the minutes, released today in Washington. The St. Louis Fed reversed its calls in April and May for a higher rate, joining the other nine regional Fed banks in requesting the rate remain unchanged.