4 ms·
> An interest rate increase on the order of 2% is laughably small This hurt my head to read. It's 200 basis points, which doesn't sound generally laughably sma
by CoffeeOnWrite 4y ago
> An interest rate increase on the order of 2% is laughably small
This hurt my head to read. It's 200 basis points, which doesn't sound generally laughably small (and is materially not generally laughably small; see sibling comment). Using "2%" is unnecessarily liable to give wrong impression. Of course, your argument still stands.
cf. Powell's quote in https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest-rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-inte... for example
- randomdata 4y ago> It's 200 basis points This hurts the head only slightly less. Once a basis point figure contains two trailing zeros, it's time to switch to the percentage point (pp).
- CoffeeOnWrite 4y agoNeat, thanks for sharing, this was new to me. But easily corroborated, eg https://www.cnbc.com/2022/06/15/powell-says-the-fed-could-hike-rates-by-0point75-percentage-point-again-in-july.html https://www.cnbc.com/2022/06/15/powell-says-the-fed-could-hi... (get it together CNBC, heh!)