In September 2013, the Fed was waiting for a pattern of economic improvement in the data before winding down its bond purchases. This wait for a signal about the economy's condition is known as decision lag.

Question

Quizplus · Accepted Answer

This is known as "forward guidance," a communication strategy used by the Federal Reserve to influence expectations about future monetary policy actions, not decision lag. Decision lag refers to the time it takes for policy makers to recognize the need for action and to implement it.

In September 2013, the Fed Was Waiting for a Pattern