Danielle DiMartino Booth, a former Fed staff member and CEO of her own financial advisory firm, says the lag time with Fed policy, which I wrote about yesterday, is going to become “extremely important” in the first quarter of 2024. Since quantitative tightening began in June of 2022, we are only starting to feel the effects of that QT now, she says, due to the 12-18 month lag between Fed policy and its effects. That means we will continue to feel the growing effects of all the QT that has happened since then for another 12-18 months.