Why does the Federal Reserve raise rates in quarter percentages?

Why does the Federal Reserve raise rates in quarter percentages?
- April 29, 2022
- Gary Richardson, economics, Marketplace, April 29, 2022
While there’s a lot of science that goes into economics, sometimes there are rules of thumb that economists just stick with, according to Gary Richardson, an economics professor at the University of California, Irvine and a former Fed historian. The Fed wasn’t seeking out the optimal percentage, he explained. “They started doing a quarter point, and it worked OK because it was clear and it was infrequent and gradual,” Richardson said.
For the full story, please visit https://www.marketplace.org/2022/04/29/why-does-the-federal-reserve-raise-rates-in-quarter-percentages/.
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