Minutes released early Wednesday show four of 12 Reserve Bank boards voted days before the July FOMC to raise the primary credit (discount) rate by 25bps. The FOMC on July 28-29 voted 9-3 to hold policy rates; the discount-rate votes underscore internal disagreement. Dallas, Cleveland and Minneapolis boards backed a 25bp increase and their presidents had voted against holding rates steady at the July meeting; the Kansas City board also voted for a 25bp rise, though its president, Schmid, did not

Minutes released early Wednesday show four of 12 Reserve Bank boards voted days before the July FOMC to raise the primary credit (discount) rate by 25bps. The FOMC on July 28-29 voted 9-3 to hold policy rates; the discount-rate votes underscore internal disagreement. Dallas, Cleveland and Minneapolis boards backed a 25bp increase and their presidents had voted against holding rates steady at the July meeting; the Kansas City board also voted for a 25bp rise, though its president, Schmid, did not have a vote this year. Reserve Bank directors do not set policy rates but inform regional presidents’ economic and policy outlooks; the Fed’s policy-rate target range has been 3.5%-3.75% since December.