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The Fed's monetary policy has lost some of its potency and interest rates may need to rise much higher as a result, economist says

Por: MarketWatch Business August 29, 2023

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In a note shared with clients last week, Nomura Research Institute Chief Economist Richard Koo challenged the notion that the U.S. economy’s resilience in the face of the Fed’s most aggressive interest-rate hikes in four decades is partly the result of the lagged effects of monetary policy that Federal Reserve Chairman Jerome Powell cited once again duringon Friday. As a result of the Fed’s policy in the past year, the S&P 500 fell 19.4%,... + full article



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