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Federal Reserve to increase interest rates by 25 basis points
- scrlk 4y agoLatest dot plot (page 4, PDF): https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20230322.pdf https://www.federalreserve.gov/monetarypolicy/files/fomcproj... Of note - no cuts planned for this year.
- MuffinFlavored 4y agobut fed futures contracts aren’t believing it/pricing it in, right?
- quickthrowman 4y agoFed funds futures traders are expecting a cut at the July meeting by a slight margin, and a 95% chance of a cut by the December meeting as of tonight. https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html https://www.cmegroup.com/markets/interest-rates/cme-fedwatch...
- MuffinFlavored 4y ago71% of a cut by July 91% of a cut by September 95% of a cut by November Kind of weird that the head chair of the Federal Reserve board comes out and says "no cuts this year" verbatim, and this pricing mechanism you and I look at says the exact opposite?
- nluken 4y agoAlso being discussed here: https://news.ycombinator.com/item?id=35264787 https://news.ycombinator.com/item?id=35264787
- toombowoombo 4y agoWhat are basis points?
- pstorm 4y agoIt is 1/100 of a percent [1]. Just a different way of saying .25% [1] https://en.wikipedia.org/wiki/Basis_point https://en.wikipedia.org/wiki/Basis_point
- DANmode 4y agoNo additional meaning to finance people. Far less meaningful for the average Joe. Not "just" a different way, when framed.
- aaronrobinson 4y agoAka bips
- tebs1200 4y agoThe reason behind "Basis Points" is that saying something has increased by a percentage is ambiguous. If interest rates are 5% and they are "increased by 0.25%", does that make them 5.25% (adding 0.25% of 100) or 5.0125% (adding 0.25% of 5). Basis points are supposed to be an unambiguous way of explaining the increase.