Mike Sankowski observed some time ago that monetary policy acts chiefly through the housing channel with a lag of several years: Since housing is a major aspect of the US economy, interest rate setting is not without effect, but it is pretty slow and inefficient, involving a lot of unintended consequences as savers are favored over borrowers and vice versa, depending on direction of rate changes.
A New Fed Study Destroys One Of The Central Tenets Of Monetary Policy
Matthew Boesler
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