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Newsletter
Past and Future Effects of the Recent Monetary Policy Tightening

The Federal Open Market Committee (FOMC) has raised short-term interest rates over 500 basis points since early last year, but it recently slowed the pace of policy tightening and some participants have signaled that the current tightening cycle might be nearing its end. In making the decision to stop raising rates, an important consideration will be the extent to which the actions already taken by the Committee have yet to feed through to the economy. On the one hand, if substantial effects of past policy tightening are yet to come, that would argue for an earlier end to rate increases, all ...
Chicago Fed Letter , Volume no 483 , Pages 6

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