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The Great Lag

Motley Fool Money

CHAPTER

Monetary Policy Lags and Economic Impacts

This chapter explores the concept of monetary policy lags, detailing how interest rate changes affect the economy over time. It highlights the lagging response of the Federal Reserve to inflation, analyzes recent trends in multifamily rents, and discusses potential risks in the housing market. The chapter concludes with an optimistic outlook for recovery by 2025, particularly due to advancements in AI amid concerns over corporate debt.

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