The Fed's current monetary tightening will filter fully into the economy within a 12-month lag rather than the historical 18-month lag, putting maximum disinflationary impact at March 2023, which should materially reduce core PCE through falling housing and rental costs.
causalpending
Speaker
Danielle DiMartino BoothEvidence Quote
“the Fed actually did an interesting paper recently that showed that rather than an 18-month lag that they figured it was closer to 12-month lag this current cycle in terms of when monetary tightening filters its way fully into the economy”
Source
DoubleLine Round Table Prime, 2023 - Part 1: Macroeconomic State of Play 1-4-23— DoubleLine CapitalCreated: 8/11/2026, 1:33:48 AM
My Notes
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