--Eight Regional Fed Banks Want Higher Discount Rate, One Lower
--Bank Directors 'Optimistic' About Growth Prospects
WASHINGTON (MNI) - Directors of another three Federal Reserve District
Banks jumped on the bandwagon for a higher rate last month, making eight banks
which want to signal their wishes by raising the discount rate, "optimistic
about the prospects for continued economic growth."
The Fed Board, as usual, did not take the hint, its minutes showed Tuesday,
waiting to give the fed funds rate the leading role on liftoff.
The discount rate, still at three-quarters of a point, once was a signaling
mechanism by which the outside world was told of rate intentions but now is only
an appendage linked to the overnight rate.
The federal funds rate