Rate shifts are transmited in “basis points (bps),” equivalent to 1/100 of a percentage point and central banks, including the Fed, typicpartner choose for 25 basis point interest rate alters. However, more meaningful shifts are occasionpartner chosen, indicating a sense of advisency. For instance, the Fed transfered multiple 50 bps and 75 bps hikes during the 2022 safeening cycle, signaling an advisency to regulate inflation and causing hazard aversion in financial tagets.
