Four Fed bank boards wanted rate hike, minutes show

Key facts

• Directors at four of the Federal Reserve's 12 banks voted to increase the interest rate for emergency loans.
• This recommendation preceded the U.S. central bank's July meeting.
• Federal Reserve policymakers voted 9-3 to keep the policy rate unchanged at their July 28-29 meeting.
• The minutes provide insight into the contested nature of the decision to hold rates steady.

Minutes released on Tuesday revealed that directors at four of the Federal Reserve's 12 banks had voted to increase the interest rate charged to commercial banks for emergency loans in the days leading up to the U.S. central bank's July meeting. This recommendation was overruled when Federal Reserve policymakers ultimately decided, by a 9-3 vote, to leave the policy rate unchanged at their July 28-29 meeting. The vote count provides a fresh perspective on how contested that decision was.