Highlights from the minutes of the Federal Reserve’s discount rate meetings from Jan-March:

  • Discount rate has been 0.75% since 2010
  • Philly, KC and Dallas Fed leaders wanted 1.00% rate
  • Directors ‘cautiously optimistic’ about economy
  • Saw consumer spending ‘improving modestly’
  • Long-term inflation expectations remained stable
  • Directors saw “softening” in residential mortgage originations

The discount minutes virtually never move markets but it’s a way for hawks/doves to register a minor dissent.