IDEAS home Printed from https://ideas.repec.org/a/fip/fedfel/98038.html
   My bibliography  Save this article

How Quickly Do Prices Respond to Monetary Policy?

Author

Listed:
  • Zoë Arnaut-Hull
  • Leila Bengali

Abstract

With inflation still above the Federal Reserve’s 2% objective, there is renewed interest in understanding how quickly federal funds rate hikes typically affect inflation. Beyond monetary policy’s well-known lagged effect on the economy overall, new analysis highlights that not all prices respond with the same strength or speed. Results suggest that inflation for the most responsive categories of goods and services has come down substantially from recent highs, likely due in part to more restrictive monetary policy. As a result, the contributions of these categories to overall inflation have fallen.

Suggested Citation

  • Zoë Arnaut-Hull & Leila Bengali, 2024. "How Quickly Do Prices Respond to Monetary Policy?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2024(10), pages 1-5, April.
    • Handle: RePEc:fip:fedfel:98038
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/wp-content/uploads/el2024-10.pdf
    File Function: Full text - article PDF
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfel:98038. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.