Following the vote the President summoned the Chairman to the President's ranch in Texas. But the vote stood. The independence of the Fed was preserved and indeed used precisely for the purpose it was intended. It is now widely held that raising the discount rate was the correct decision. The minutes of that Board meeting make interesting reading.
The debate was not just about the importance of asserting the independence of the Fed. It was also about the importance of facilitating policy coordination. Some members of the Board were reluctant to go counter to the policy direction of the Administration, and preferred negotiation, given that the Administration also deserved a voice in stabilization policy.