- Policy meeting concludes at 2 pm with release of statement, projections
- Officials expected to cut benchmark rate a quarter of a percentage point
- Miran now in office; Cook remains as litigation continues
WASHINGTON, Sept 17 (Reuters) - The most politically charged U.S. Federal Reserve meeting in years wraps up on Wednesday with broad expectations for a quarter-percentage-point interest rate cut that may spark dissents from some policymakers who feel it is too small and too late and others who feel it is not warranted at all.
Just as critical as that decision will be an updated slate of projections showing where policymakers see the economy and monetary policy heading eight months into President Donald Trump’s extensive rewrite of U.S. economic policy and unrelenting pressure on the central bank to lower borrowing costs.
He’s bound and determined to turn us into Turkey, where Erdogan keeps the interest rates low so his buddies can buy up everything while the economy craters.
Now that everyone has recent memory of the relationship between low interest rates and high inflation, I bet corporations are going to use an interest rate cut as a smokescreen to increase prices.
I mean, have you looked at prices recently, they’ve already been going up. That’s why they didn’t want to lower the rates, it’s only going to accelerate inflation that’s been creeping up due to tarrifs.
Remember, headline inflation (the feds favorite metric for gauging inflation) is at 3.1% which you may notice is actually greater than 2%.
I dont understand why any economic or political news dealing with percentages have to use “percentage points”. I want to say the feds are cutting rates by “a quarter of a percentage point” means 0.25% right? Or is it the same with politics where it means theyre cutting 0.5% ?
Because “percentages” (relative change) and “percentage points” (change in measured units) are different.
If you’re going from 4.50% to 4.25%, that’s a reduction of 0.25 percentage points (4.50 - 4.25), but also of about 5.6 percent (0.25 / 4.50).
Ok, that makes sense. I guess the issue stems from political voting where “theres a 1 point swing” means theres somehow a 2% gap because…idk. so when I hear that for a whole damn year every 2 years or something that stupid measuring metric is what stays in my head.
I hate people, people make shit stupidly complicated
In that case you’re going from, for example 50% and 50% to 49% and 51%.
If you just have 100 people in a room divided evenly, and one person crosses the line in the middle, one side of the room has +1 person and the other is side has -1 person. There’s a 2 person (2%) difference.
The answer probably has something to do with tradition, typesetting, and ticker tape machines. Like using 1/4 instead of 0.25% saved $x million each day in ink or some shit like that. I don’t know, I’m pretty drunk.
