Huixin Bi

Feb 2, 2024 | kansascityfed.org | Huixin Bi |W. Blake Marsh |Phillip An

Subscribe Share Download Article In recent years, the Federal Reserve tightened monetary policy at an unprecedentedly rapid pace to quell post-pandemic inflation. Since March 2022, the target federal funds rate—the Fed’s preferred policy lever—has increased 525 basis points. In response, market interest rates have broadly risen across the economy, leaving businesses’ borrowing costs higher than levels that prevailed before the pandemic.