Courtesy of Mish.
I was on record stating a belief the Fed would effectively hike by 1/8 point. I had that belief because that is what the Fed Fund Futures implied.
Regardless, I was wrong. If someone is going to prove you wrong it may as well be yourself.
Here is a table of Effective Fed Funds Rates straight from the New York Fed. I created the table from their downloadable data.
Effective Fed Funds Rate
Previous effective rates hovered around 12.5 basis points. That is 1/8 of a point. A quarter-point (25 basis points) hike would have been to 37.5. An eighth-of-a-point hike would have been to 25 basis points. Today we are at 37.
Mike "Mish" Shedlock
