Four of the Federal Reserve’s 12 regional bank boards voted to increase the primary credit rate by a quarter percentage point ahead of the central bank’s July policy meeting, newly released minutes show.
The boards of the Dallas, Cleveland, Minneapolis and Kansas City Federal Reserve Banks recommended the adjustment to the rate charged to commercial banks for emergency loans. The proposal was ultimately overruled when Fed policymakers voted 9-3 to leave the policy rate unchanged at their July 28-29 meeting.
The primary credit rate, also known as the discount rate, has remained within the 3.5% to 3.75% range since December. The minutes from the Fed’s discount-rate meetings were published on August 25, following the July policy gathering. Kansas City Fed President Jeff Schmid, who does not hold a 2025 voting seat on the Federal Open Market Committee, participated in the regional board’s recommendation.
