Lag Effect

Fed’s Looming Rate Cuts Could Impact Corporate America Amid Delayed Reaction to Tightening

Between early 2022 and mid-2023, the Federal Reserve executed one of its most aggressive monetary tightening cycles since the early 1980s. The central bank raised America’s policy interest rate from a near-zero range of 0-0.25% to a robust 5.25-5%. As the Federal Reserve prepares for its next policy meeting on...