Hi,

A quarter point means 25 basis points or 0.25%. All are equivalent.

Fed "delivers" means that the Federal Reserve created/made happen/"delivered" a hike in the rates.

So both quotes mean that the FOMC raised its target rate for federal funds to 2.75%

Hope that helps.

MH

http://www.federalreserve.gov/BoardDocs/Press/monetary/2005/20050322/default.htm


For immediate release

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 2-3/4 percent.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity. Output evidently continues to grow at a solid pace despite the rise in energy prices, and labor market conditions continue to improve gradually. Though longer-term inflation expectations remain well contained, pressures on inflation have picked up in recent months and pricing power is more evident. The rise in energy prices, however, has not notably fed through to core consumer prices.

The Committee perceives that, with appropriate monetary policy action, the upside and downside risks to the attainment of both sustainable growth and price stability should be kept roughly equal. With underlying inflation expected to be contained, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S. Bernanke; Susan S. Bies; Roger W. Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Anthony M. Santomero; and Gary H. Stern.

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 3-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, and San Francisco.

1. Point...yes, your definition is correct. HOWEVER, be careful. Sometimes you will hear "basis points". A basis point is 0.01%. In other words 25 basis points (bps) is a quarter point. Confusing? It is to me.

2. Deliver:

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de·liv·er (di-liv'?r)

v., -ered, -er·ing, -ers.

v.tr.
1. To bring or transport to the proper place or recipient; distribute: deliver groceries; deliver the mail.
2. To surrender (someone or something) to another; hand over: delivered the criminal to the police.
3. To secure (something promised or desired), as for a candidate or political party: campaign workers who delivered the ward for the mayor.
4. To throw or hurl: The pitcher delivered the ball.
5. To strike (a blow).
6. To express in words; declare or utter: deliver a lecture.

7a. To give birth to: She delivered a baby boy this morning.
7b. To assist (a woman) in giving birth: The doctor delivered her of twins.
7c. To assist or aid in the birth of: The midwife delivered the baby.
8. To give forth or produce: The oil well delivered only 50 barrels a day.
9. To set free, as from misery, peril, or evil: deliver a captive from slavery. See synonyms at save1.
v.intr.

1. To produce or achieve what is desired or expected; make good: The senator delivered on her pledge. He is a manager who just can't seem to deliver.
2. To give birth: She expects to deliver in late August.
idiom:
deliver (oneself) of

To pronounce; utter: Before leaving I delivered myself of a few choice comments.

[Middle English deliveren, from Old French delivrer, from Late Latin deliberare : Latin de-, de- + liberare, to free (from liber, free).]

de·liv'er·a·bil'i·ty n.
de·liv'er·a·ble adj.
de·liv'er·er n.

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The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2004, 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

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See definition number 8. It matches your example.

Hope that helps.

MountainHiker

Hi,

They all have similarities. To me, 7 refers to the act of childbirth. Whereas 8 is "delivering the goods," whatever those goods might be. So you can think of 7 as a specific form of 8. But I think of them separately.

She's about to deliver her first child. It's clear what that means.

That water well delivers 200 liters of water per hour. It is clear what that means.

You could say that those two examples are very similar, but, for whatever reason, I see them separately. Perhaps, I see one of nature and creation of life, and the other mechanical. In any event, you understand the difference and similarity.

On my resume, for example, I list one of my attributes as "Ability to deliver". It's a my way of saying, you give me the challenge and I will deliver results.

Hope that helps.

MH

Just to add,

A quarter point means 25 basis points or 0.25%.

This is true as long as you consider 0.25% as the percent of one. Do not calculate it as 0.25% of 2.50 (that would give 0.00625).

Further to rwiles's explanation about interest rates and exchange rates, what I do to avoid mistakes is just raise the figure given by the basis point given by adding the basis point to the given figure, depending on the number of figures after the point.
Example: 1.8322 + 0.0035 = 1.8357 (22+35=37, i.e. add the two-digit basis point to the last two figures after the decimal point).