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Federal Reserve

6 Fed banks wanted 0.25 pct hike in discount rate in June

Fed releases discount rate minutes

Six Federal Reserve banks wanted to raise the discount rate in June despite a shockingly weak May jobs report.

The banks of Cleveland, Kansas City and San Francisco supported the hike after the U.S. only created 38,000 jobs in May, far below economist estimates of 162,000.

The Federal Reserve banks of Boston, Richmond and St. Louis voted for a 0.25 percent hike in the discount rate before the May jobs report.

Although half of the Federal Reserve banks supported a raise in the discount rate, the Federal Open Market Committee ultimately decides whether to maintain or increase existing rates. The Fed banks that supported the hike expected a stronger economy and higher inflation. But the central bank ultimately left the discount rate unchanged at 1 percent in June.

The discount rate is the interest rate the U.S. central bank places on its loans to commercial banks.

— CNBC's Steve Liesman and Elizabeth Schulze contributed to this report.