Fed discount rate minutes highlights:
- Richmond and Kansas City voted for discount rate hike to 1.25% from 1.00%
- Regional bank directors viewed growth as 'moderate'
- Saw positives in housing and consumer spending
- Some noted weakness in manufacturing, energy and exports
- KC and Richmond cited better labor market conditions
Back in Jan after the hike, all 12 regional banks voted to hold rates at 1.00% so there's a small hawkish shift but KC is no surprise because George dissented in favor of a hike. If there are 4-5 votes to hike, it's a stronger signal that the Fed is closer to hiking the Fed funds rate.