Fed’s Regional Bank Boards Increase Pressure for Rate Hike
- Dallas and Philadelphia Fed directors change vote to hike
- Fed Board releases minutes of July discount-rate meetings
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The boards of directors at eight of the 12 regional Federal Reserve banks sought last month to increase the rate on direct loans from the Fed to 1.25 percent from 1 percent, according to details released by the U.S. central bank Tuesday.
The votes mark the first time since policy makers raised the benchmark federal funds rate in December that a majority of the Fed’s regional boards backed a discount-rate increase. The votes can be a signal of whether a bank’s president favors a change in the main policy rate.