No Fed banks sought rate rise from March to May

Thu Jul 8, 2004

WASHINGTON, July 8 (Reuters) - None of the Federal Reserve's 12 regional banks requested a change in interest rates between late March and early May, according to Fed discount rate minutes released on Thursday.
The minutes show the Fed board considered requests by the bank's boards on March 29, April 5, April 19 and May 3 to leave the discount rate unchanged at 2 percent.

The discount rate, which governs loans to banks from the Fed, is set by the regional Feds subject to review and approval by the Fed board. The Fed board considers requests on setting the rate periodically, but usually moves in conjunction with its fed funds rate.

The minutes also highlighted a discussion on May 3 about the "continued appropriateness of the current accommodative stance of monetary policy and the communication of its potential duration in light of recent and prospective economic developments."

At the end of the Fed's monetary policy meeting the next day it opted to leave its federal funds rate target unchanged at 1 percent and said it thought it could change rates "at a pace that is likely to be measured."

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