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Setting the Rate

Driving by the Mirror

The data is three months old, the effect lands in eighteen. Everything difficult about this job is in that sentence.

10 min125 XP available4 challenges

Put these in order

Put one rate rise in order, from the decision to its effect on prices.

Earliest cause at the top

  1. Spending and hiring slow

  2. Money market and short bond yields move

    Minutes — often before, if it was expected

  3. Banks reprice new loans and deposits

    Weeks

  4. The committee raises the rate

    Day zero

  5. Price and wage setting responds

    A year to two years out

  6. Firms shelve projects; households delay purchases

    Months

Answer to continue.