6 Banks Voted to Hike June Fed Discount Rate, CNBC's Liesman Says
NEW YORK (TheStreet) -- Six Federal Reserve banks wanted to raise the discount rates by 0.25% in June, CNBC's Steve Liesman reported on "Power Lunch" Tuesday.
This update was released today in the Fed's June discount rate meetings' minutes.
Among the six banks that wanted to hike the discount are Boston and St. Louis, joining Richmond, Cleveland, San Francisco and Kansas City which all were in the raise camp prior to June, according to Liesman.
"Just a little parsing of this: Boston, Richmond and St. Louis took their vote, their board of directors wanted to do this, before that weak May jobs report," Liesman said.
Cleveland, San Francisco and Kansas City voted after the U.S. Department of Labor released the poor jobs report for May, he continued.
"The Fed banks that wanted that hike expected a stronger economy and higher inflation, but the Federal Reserve Board, they act on these requests from the banks' board of directors. They left the discount rate unchanged at 1%," Liesman stated.
The discount rate is the interest rate at which banks are charged for loans borrowed from the Fed's lending facility, known as the discount window.
"That is a 45 second story on how much the world has changed in just a month, because right now we don't know how those banks would vote," Liesman concluded.