Boston Fed wants discount rate cut, KC Fed a hike
WASHINGTON (Reuters) - The Boston Federal Reserve Bank again pushed for a cut in the central bank's rate for emergency bank loans in June while its Kansas City counterpart sought an increase, minutes of central bank board meetings showed.
The Fed has kept the discount rate steady at 0.75 percent, following the recommendation of the other 10 regional Fed banks.
At its most recent meeting in June, the Fed decided to extend a program where it buys long-term debt to keep borrowing costs low by using the proceeds from shorter-dated securities so as to not increase the size of its balance sheet.
Many directors cited downside economic risks from strains in global financial markets and uncertainty over the course of U.S. fiscal policy, the minutes said.
Some pointed to strong performance in the energy sector while others were encouraged by recent strength in housing.
(Reporting by Pedro da Costa; Editing by Andrea Ricci)
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