This page has been archived and commenting is disabled.
9 Regional Feds Pushed For Discount Rate Hike In October
In July it was 5, then in October the number rose to 8, and moments ago we learned that during the meetings on October 15 and 22, a total of nine regional Feds had asked to increase the Fed's discount rate from 0.75% to 1.00%, with Boston joining the St. Louis, Atlanta, San Francisco Fed, Cleveland, Dallas, Philadelphia, Kansas City and Richmond Fed. Two banks, the Chicago and NY Fed wanted to keep rates at 0.75%, while the domain of Fed's uber dove Kocherlakota, the Minneapolis Fed where former Goldmanite Neel Kashkari will soon operate, asked for a Discount Rate cut to 0.50%.
According to the minutes, the Fed Directors requesting an increase in the primary credit rate (to 1 percent) viewed a move toward a
more normal level as appropriate in light of the improvements in labor market conditions this year and their expectations for inflation to rise gradually toward the Federal Reserve's 2 percent objective. Some directors favoring an increase judged that an earlier start to the policy normalization process could allow for a more gradual pace of adjustment, thereby limiting the associated risks.
As a reminder, the Board’s meeting to review discount-rate requests took place on Oct. 26, two days before the Federal Open Market Committee decided to hold the federal funds rate target in a range of zero to 0.25%.
However, even as the regional Fed hawks were soaring, the discount-rate minutes said that "no sentiment was expressed for changing the primary credit rate before the Committee’s meeting, and the existing rate was maintained" among the Fed Board.
And before one is convinced that the hawks are flying in the Marriner Eccles building again, it is worth recalling the regonal Feds are largely irrelevant at the Fed where what matters is what former Goldmanite Bill Dudley, head of the NY Fed, and of course Janet Yellen want.
Finally, there was no disclosure about what was covered during the Fed's emergency meeting which took place yesterday as we first covered last week, where setting of discount rates was the publicly disclosed topic of conversation.
Full minutes here.
- 173 reads
- Printer-friendly version
- Send to friend
- advertisements -



Bout time. see how the markets react
This is a WTF moment.
A bunch of Keynesians idealogues deciding what the price of capital should be!
It makes as much sense as if they were deciding what the price of brocoli should be.
You poop heads have put our country in a hole that we can't get out without a massive financial crisis.
The nanosecond that you poop heads raise interest rates the price of bonds will drop.
What do you think that those holding bonds will do? Wait until interest rates are raised again and again?
No, bond holders will sell their bonds and then you poop heads will buy all comers!
The market will then realize that there is a sucker, the Fed, buying all comers and you will create a hyperinflation.
We don't need to audit the Federal Reserve, we need to abolish the Federal Reserve system.
"According to the minutes" LOL
as opposed to...
"According to the bartender" [at The Top of The Standard Bar (following the Fed party)] The Regional Feds were found laughing at how stupid the general public was when it came to reading their fabricated minutes and how they were all taking bets on which excuse was going to be used this time around to maintain zero.
Fuck you Janet!
Their tinkling down a little
Does the discount rate even mean anything anymore?
Correct. The discount rate doesn't mean jack. Nobody uses that. Raise the fed funds rate to 1% and at least money markets and savings accounts would earn something. A lot of little banks might get squeezed in the process.
according to CNBC, now not only are you a racist for criticizing the fed, but now you are sexist since janet is a woman (or so we are told)
racist or "anti-semite", sorry forgot same thing, but they're not a race, it's a religion... so you're a racist and a bigot? confusing.
You mean one can be a triple PC offender by calling Janet a Jewish Cuntosaurus dimwit ecommunist...
Yes I noticed that yesterday when Ralph Nader wrote his letter to Janet. I think it was the New York Times who wrote an article on it and the NYT only really focused on the fact that Nader told Janet to ask her husband and made it seem like ralph was a womanizer. All the sheep jumped off the cliff and almost every comment on that article was about Ralph being a womanizer jerk and that it was wrong he doesn't like women in higher positions. The sheep completely forgot about the letters POINT that the fed shouldn't have kept rates near zero for 7 years. They are so easily distracted with emotional things the mainstream media tells them they need to worry about.
Liars
Soap opera.
5 basis points and allow the world to react accordingly.
Honestly, why does it even matter anymore?
http://www.bloomberg.com/bw/stories/2007-11-04/the-even-keel-economy
for your reading pleasure, a blast from the past, november 4, 2007 to be exact.
some clips: 'how long will the great moderation last?'; and 'as long as a crisis large enough to cut off funding to the housing market doestnt occur...."
the true irony in the second quote is that the cutoff in financing into the housing sector wastn prompted by a financial crisis...the cutoff of funding, which occurred 9 months BEFORE this article was written (first subprime lenders went belly up when ninja buyers couldnt flip fast enough and couldnt/wouldnt make first payments) was the PRECURSOR of the financial crisis.
...and the answer to the first quote, apprantly, was a mere 30 more days....as the 'recession' began december 2007....WHOCUDDANODE??
LOL, November is almost over and no rate hike.
What Fed BS!
Where's Hilsenrath? Still wanking William Dudley of the NY Fed?
How many of the 9 want a federal funds rate hike?
Even the slow kid eventually figures out what a head fake is. Usually they figure it out just to be suckered with their limited understanding.