Kohn says Fed policy lags may be shorter

The communication of interest-rate moves during the Fed's latest tightening campaign may mean their impact on the economy will be felt more quickly than otherwise, a top Fed official said in a letter released on Friday 28 July.

"In the current episode, Federal Reserve communications have enabled investors to anticipate much of the rise in the funds rate that has occurred over the past two years and incorporate those expectations into prices in financial markets, speeding up the response of rea