Federal Reserve leaders warned of monetary policy’s "long and variable" lags numerous times in 2023. This term refers to the unpredictable speed at which interest rate changes can affect the economy. The higher borrowing costs that come with the Fed’s decisions may slow economic growth for long periods of time. And in the short term, businesses and households may contend with moderately higher cost loans.
Chapters:
Cold Open: 0:00 – 01:14
Chapter 1: Lags 01:15 – 03:25
Chapter 2: When, exactly? 03:25 – 06:15
Chapter 3: Predictions 06:15 – 08:26
Produced by Carlos Waters
Animation by Christina Locopo
Supervising Producer Lindsey Jacobson
Additional Footage Getty Images
Additional Sources Federal Reserve Bank of Atlanta, Federal Reserve Bank of Dallas, Federal Reserve Bank of Kansas City, Reuters, Federal Reserve Bank of San Francisco
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
Why Interest Rates Take So Long To Affect The Economy
