Conner Mulloy

Aug 7, 2023 | richmondfed.org | Conner Mulloy |Pierre-Daniel G. Sarte |Erin Henry

August 2023, No. 23-26 Since the Federal Open Market Committee began raising the federal funds rate in March 2022, people have speculated on the trajectory of both monetary policy and the economy. By looking at previous rate cycles, this article compares historical monetary policy cycles with the current period. We find the current cycle to be unique in terms of both the speed at which interest rates rose and the movement of inflation during the series of rate hikes.