On July 31, the Federal Reserve cut its target rate range by 25 basis points to 2-2.25%. A summary of discussions released Tuesday shows that most regional Fed bank directors believe that increased trade tensions and uncertainties pose risks to the U.S. economic outlook, similar to the views of policy makers who voted for interest rate cuts.
But minutes show that six regional Fed banks voted to keep the interest rate on emergency loans to commercial banks unchanged just a week before the Fed's policy meeting on July 30-31.
The minutes show that their reason is that "the job market is strong and inflation is close to the 2% target of the Federal Reserve".
Fed governors'proposals for discount rates are not Fed rate policy votes, but their votes often reflect the views of their Fed president.
The minutes of the Federal Reserve Policy Meeting released last week also showed that there were serious differences among policy makers on whether to cut interest rates, and "many" policy makers were in favor of not cutting interest rates.
Williams, President of the Federal Reserve Bank of New York, and most Federal Reserve policymakers voted in July to lower policy interest rates. Williams has a close relationship with Federal Reserve Chairman Powell.
** The President of the Federal Reserve of Minneapolis supports a 50 basis point interest rate cut**
The minutes of the meeting showed that "considering the risks facing the economic outlook and the depressed inflationary pressures", the governors of the other six regional Federal Reserve banks proposed a reduction in the so-called discount rate.
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