Bernanke and Company, Why not raise interest rates smaller increments, say, 1/16 or 1/8 pt/%?

Question

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

Answer 1

They will not go lower like that because the reserve bank is  not really the U.S's Money, the world banks and federal bank 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 people 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 had been groomed 30 yrs. ago when these men were young;  many as they matured have felt guilty for doing the Agenda of the FEW) Leaders were assanated by the Jackles; ) after they started having 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 came together with

a plan to help other countries get out of these agreements

that were used to have these other Nations hooked by a line and sinker, that put these Nations in such debt to the world  banks they had to sign very important things away like the Amazon areas.  No wonder there are so many places in debt at such high amounts the world bank knows they can  never pay the loans back. Then they get these valuable lan ds or other minerals, gems whatever these nations 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 had with our first 6 houses; 8%  and we could pay the mortage off sooner without penalty.

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

Peace!!

Answer 2

The economy 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 a little and see what happens in the rest of the economy over the following month.  I they use half and whole points, then that's a big hammer and can over-correct and cause more trouble than is being fixed.  (Although they do this sometimes when a really obvious problem occurs.)  If they use tiny movements, the result gets lost in statistical noise and they can't tell if they are doing anything.  Any results may turn up too late to do any good because it will take two or four times as long to see results.  We're left with 1/4 as a result because it's what works least poorly.

Answer 3

Oh, dear lord, no!

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

Second, The Fed with Mr G and Mr B have become overly sensitive to the market place.  In my opinion, the should change rates in large steps or not at all...small steps fuels speculation and commentary -- sound and fury signifying nothing.

(I am libertarian in my beliefs.  In a perfect world, the currency would be backed by gold, the government could only borrow money in emergencies, and the fed would be irrelevant)

Answer 4

They have no clue, what they are doing, like blind mice, so why not in 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 with our economy, so nothing will make a difference at that late stage.

Answer 5

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

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