Large Bank Supervision Forum eBook

Internal Use Only

Aggressive Monetary Tightening (Pace & Length of Recent Fed Tightening Cycles)

6

3/22-2/24+

5

6/04-9/07

4

3/94-7/95

3

12/15-7/19

2

6/99-1/01

1

Tightening Cycle (Percentage Points)

0

0

34

68

102 Increase in the Fed Funds Target Rate from Start of Fed 136 170 204 238 272 306 340 374 408 442 476 510 544 578 612 646 680 714 748 782 816 850 884 918 952 986 Number of Days Following Start of Fed Tightening Cycle 1020 1054 1088 1122 1156 1190 1224 1258 1292

Internal Use Only

Higher Inflation Rates Prompted the Fed to Begin to Tighten Monetary Policy...

12

Food Inflation

10

8

6

4

CPI less food and energy

CPI All Items

Inflation Rate (%)

2

Fed Tightening Begins

0

-2

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24

Sep-16

Sep-17

Sep-18

Sep-19

Sep-20

Sep-21

Sep-22

Sep-23

May-16

May-17

May-18

May-19

May-20

May-21

May-22

May-23