Bernanke and Company, Why not put on a pedestal interest rates smaller increments, utter, 1/16 or 1/8 pt/%?

Why do you have to use 1/4 as some sort of baseline?

Savings and Investments?



Answers:   The Reserve Bank isn't forced to angle interest rates at 1/4%, but they do set a base splash they try to stick to. By keeping to this it avoids unpredictability on part of the RB and nearby is more confidence in the discount from investors and savers and help them to predict the future state of the discount.

This is important as investment is a knob requirement to economic growth.

Financial discussion?


Oh, dear lord, no!

First The Fed doesn't set "interest rates." They control the rate at which bank borrow from each other. That rate tend to put a floor under what the bank will charge you and me, but it does not dictate what those rates are.

Second, The Fed with Mr G and Mr B enjoy become overly sensitive to the market place. In my belief, the should change rates within large steps or not at adjectives...small steps fuels speculation and commentary -- sound and fury signifying nil.

(I am libertarian in my beliefs. In a watertight world, the currency would be backed by gold ingots, the government could merely borrow money in emergency, and the fed would be irrelevant)

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They will not turn lower like that because the reserve sandbank is not really the U.S's Money, the world banks and federal edge reserve is the few Filthy Rich's MONEY ( that are manipulating our country, and the other Nations around the world.) It is a Game to these citizens they use our U.S, as their platform to do their Agenda. If we do not wake up and try to win thee Economic Hit Men that have been groomed 30 yrs. ago when these men be young; abundant as they matured have feel guilty for doing the Agenda of the FEW) Leaders were assanated by the Jackles; ) after they started have kids of their own, What Kind Of World Do We want to leave our Children?They are coming out one by one, and If these men come together with
a plan to minister to other countries get out of these agreements
that be used to have these other Nations hooked by a smudge and sinker, that put these Nations in such debt to the world bank they had to sign remarkably important things away similar to the Amazon areas. No wonder there are so copious places in debt at such dignified amounts the world bank know they can never pay the loans put money on. Then they get these dear lan ds or other minerals, gems whatever these nation have that these FEW WANT THEIR HANDS ON. EGO is what is controlling our world.

Look at the low rates at a fixed for a 15 yr.Mortage we have with our first 6 houses; 8% and we could settle up the mortage off sooner minus penalty.

They want the relations in debt so they would NEVER GO IN SMALL INCREMENTS. Sorry!!
Peace!!

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The cutback is too complex for them to really be able to fine tune it by eights and sixteenths.

All they can do is move their Fed Funds target for a time and see what happens surrounded by the rest of the economy over the following month. I they use partly and whole points, after that's a big hammer and can over-correct and do more trouble than is being fixed. (Although they do this sometimes when a really deliberate problem occurs.) If they use tiny movements, the result get lost in statistical roar and they can't tell if they are doing anything. Any results may turn up too deferred to do any good because it will appropriate two or four times as long to see results. We're left beside 1/4 as a result because it's what works least poorly.

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They hold no clue, what they are doing, like blind mice, so why not within 1/4 increments. The average US citizen is mathematically illiterate anyway to comprehend anything beyond that.
We are going down the drain, thanks to the blind mice next to our economy, so nought will make a difference at that deferred stage.

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