3 ms·
Fun trivia: a basis point is 0.01%. So 50 basis point is half a percent (0.50%).
by Kye 4y ago
Fun trivia: a basis point is 0.01%. So 50 basis point is half a percent (0.50%).
- didgeoridoo 4y agoI wouldn’t call that trivia, as it is central to understanding what actually happened :) Trivia would be: “The basis point is named after Theodorus Basis, the grand-nephew of the first chairman of the Federal Reserve Bank.”
- Kye 4y agoInfamous for creating a paradox when he picked up a dollar from the ground.
- aksss 4y agoThat Basis is the basis of basis is basically a surprise to me. TIL.
- bombcar 4y agoIt's basically bullshit is what it is - basis in basis point comes from the same root as basis in cost basis, apparently.
- foobarian 4y agoAnother fun trivia: a less frequently used name for 0.01% is a permyriad[1]. [1] https://en.wikipedia.org/wiki/Basis_point#Permyriad https://en.wikipedia.org/wiki/Basis_point#Permyriad
- SomewhatLikely 4y agoWell you see now you've made it ambiguous. Basis points are unambiguously absolute points. But if you say half a percent increase you could mean 50 basis points or you could mean the the new value is 1.005x the old value.
- throw7 4y agoHow does that relate to their statement: "the Committee decided to raise the target range for the federal funds rate to 4-1/4 to 4-1/2 percent." That looks like a 1/4 percent raise, but then the language is weird to me (_to_ 4-1/4 to 4-1/2 percent", wouldn't one say from 4-1/4 to 4-1/2 percent)
- flicken 4y agoThe key phrase here is "target range"---it's not an exact number, but a range. The previous statement[1] was .50% lower on both ends of the range: > the Committee decided to raise the target range for the federal funds rate to 3-3/4 to 4 percent [1] https://www.federalreserve.gov/newsevents/pressreleases/monetary20221102a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone...