All but one bank requested to raise discount rate in December: Fed minutes

Federal Reserve Chair Janet Yellen
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Federal Reserve Chair Janet Yellen

All but one bank requested to raise an interest rate the U.S. central bank places on its loans to commercial banks for the month of December, according to Federal Reserve Board discount rate minutes released on Tuesday.

The Federal Reserve Bank of Minneapolis asked to leave the discount rate unchanged, according to Fed minutes. The Board of Governors raised the discount rate in December to 1.25 percent from 1 percent.

Fed directors cited further improvement in the economy, strong consumer spending and a pickup in manufacturing, according to the minutes, and most directors see positive developments in the labor markets.

Nine Fed members voted to raise the discount rate in November.