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Discount Rate Follow-Up: And Then There were Nine
On Monday, the Federal Reserve met to discuss the discount rate. There has been a steady increase in the number of regional Federal Reserve presidents requesting an increase in the discount rate. The minutes of the October 26 meeting were reported yesterday. The meeting was held before the FOMC met on October 27-28. At that meeting, nine of the 12 regional presidents expressed a preference to lift the discount rate. It is a preference because it is ultimately up to the Board of Governors. The Boston Fed joined eight of the regional reserve banks that wanted to hike the discount rate in September. In July and August, ... (full story)