Don’t Fear the Taylor (Rule) Fed; It May Not Look Much Different
- Taylor would face uphill battle in debate over neutral rate
- Economic reality may trump push for more rule-based approach
White House Seeks Fed Chief Willing to Change Rules
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John Taylor’s monetary policy rule says the Federal Reserve should have interest rates three times as high as they are at the moment. But even if President Donald Trump picks the Stanford professor as the next chairman of the U.S. central bank, they probably won’t get there any time soon.
Taylor is said to be among five people under consideration to lead the Fed, a short list that includes current Chair Janet Yellen, whose term expires in February.