Miran: Interest rate changes will take at least a year to hit the economy

• Monetary policy changes have a significant lag, taking 12-18 months to flow through into the economy.
• Inflation caused by immediate supply shocks (e.g., oil prices, airfares) is real but cannot be affected by current monetary policy.
• Monetary policy should be forward-looking, considering effects 12-18 months out, and focus on factors like population growth and deregulation.

Fed Governor Stephen Miran explains that monetary policy changes, such as interest rate adjustments, take 12 to 18 months to impact the economy. He distinguishes this from immediate supply shocks, like oil price increases, which cause 'very real' inflation but are not directly addressable by current monetary policy. Miran advocates for a forward-looking approach to policy decisions.