The Fed's Inner Feud Rages On
In further Fed cannibalism news, two Fed banks would like you to know without a shred of doubt that they wanted to hike the discount rate. I'm not sure what we're supposed to do with this information but I imagine it would be reasonable to assume that we'll be getting quite a bit of this in the weeks and months ahead as the regional banks preen and primp for each other while pushing their anti-Board agenda. JDA is 100% down for bitch-fighting in the Fed ranks and would like to put $50 on Richmond Fed now just so we can get that out of the way. 2-1 SF Fed ends up getting sold as some bastard arm of Canada's central bank - WTF else good are they?
I digress. Blah blah blah, take notes or something.
Two regional Federal Reserve banks led by more hawkish policymakers began a push to raise the discount rate for Fed emergency bank loans in mid-January, according to minutes of a Fed board meeting released on Tuesday.
The Kansas City and St. Louis Federal Reserve banks were the first to call for the rate hike that was ultimately implemented last week, minutes of the January 25 meeting showed.
When the Fed's policy-setting Federal Open Market Committee met on January 26-27, only those two banks called for raising the rate the Fed charges on emergency loans to banks.
"In light of improving conditions in financial markets, some Federal Reserve Bank directors indicated that they favored increasing the primary credit rate by 25 basis points in order to begin to restore a more normal discount rate structure," the minutes said.
In case you missed it, you really need to read Federal Reserve System Presidents: "This is Your Ass!" to catch up. Grab some popcorn and put a few bucks on your favorite Fed bank. If anyone has the balls to actually take me up on this and start a pool, hit me up. TRB? Come on, this is your kind of shit.