Cite tepid prices
The directors of 12 regional Fed reserve banks sought no change in the Discount rate at the last meeting. The discount rate is the rate that banks borrow money from the Fed at the discount window. It is less of policy tool then in the past.
What is interesting is the view from the regional directors:
- Some Fed directors saw moderate wage pressures
- Many Fed directors reported further labor market tightening
- Fed directors saw improvement in economic activity
- Fed directors saw rates appropriate due to soft inflation
- Directors noted inflation somewhat below Fed's 2% goal
- Saw consumer spending gains in services, tourism
- Saw fiscal uncertainty retraining spending
