At today’s FOMC meeting, the Federal Reserve downshifted its pace of rate hikes, this time lowering the “speed limit” to 25 basis points (bps), down from December’s 50 bps increase. This week on the Basis Points podcast, Kevin Flanagan outlines what this means for the economy and inflation and what to expect from the Fed going forward.

Basis point: 1/100th of 1 percent.