Fed Discount Rate Minutes: 3 Fed banks reiterate request to increase discount rate to 1.0% from 0.75%, unchanged from prior meetings
- Federal Reserve Bank directors noted recent improvements in economic activity following a slowdown earlier in the year because of severe winter weather. Overall, most directors expressed positive views that the economy would continue to expand at a moderate pace. While consumer spending had started to pick up, some directors cited uneven activity across income groups. Some directors also reported increased construction activity, particularly for commercial and multifamily residential projects. Commercial lending had expanded moderately, but residential lending continued to slow for both purchases and refinancings
- Although prices for food and other commodities had increased recently, directors did not note a change in longer-term inflation expectations, which had remained stable
- Philadelphia had voted on April 17, and the directors of the Federal Reserve Banks of Kansas City and Dallas had voted on April 24, to establish a rate of 1 percent (an increase from 3/4 percent).
- Reminder: Prior minutes from 4/15: No change in regional bank stances, 3 banks still request raise in rate to 1.0% from 0.75%