Monetary Policy Lags A second issue for the FOMC is how long it takes for changes in monetary policy to affect economic activity and inflation. As reported in the minutes of various FOMC meetings, the Committee often discusses these lags.
1 These concerns regarding the lack of political will to remedy this unsustainable situation proved to be extremely prescient. However, such early warnings went unheeded. In August 2007 the concerns that many people had been harbouring for a while were abruptly translated into financial turmoil.