Directors at three of the Federal Reserves regional banks voted to increase the discount rate, or interest rate charged on commercial banks for emergency loans, ahead of the January FOMC meeting, minutes released on Tuesday showed. The rate hike recommendation came from the directors at the Federal Reserve banks of Cleveland, St Louis and Kansas City. At the January meeting, the Fed voted unanimously to keep interest rates on hold 0.0-0.25%. According to the minutes, the three regional Fed directors who supported an earlier rate hike did so given "elevated inflation or to help manage economic and financial stability risks". 

Market Reaction

Markets are much more focused on geopolitics with US President Joe Biden's announcement of sanctions against Russia due any moment now.