WASHINGTON — Federal Reserve policymakers remained cautious about the economy’s prospects, according to minutes of meetings on the central bank’s discount rate, with some officials citing restraint by consumers and businesses because of stock market volatility and uncertainty in the U.S. and Europe over fiscal matters.
The Fed on Tuesday released the minutes of its discount rate meetings from Aug. 22 through Sept. 19. The discount rate is charged to banks on short-term emergency loans.
Ten of the Fed’s 12 district banks recommended keeping the discount rate unchanged at 0.75 percent, according to the minutes. Directors from the Kansas City and Dallas Fed called for an increase in the rate to 1 percent. The Fed Board of Governors in Washington D.C., which has the final say on the discount rate, voted to leave it unchanged.
Since August, the Fed has taken steps to spur spending by pushing down already low interest rates. The central bank has vowed to keep short-term rates near zero until at least mid-2013 and then announced the rejigger of its securities portfolio so it holds more mortgage bonds and long-term debt than previously planned. Dow Jones Newswires
