Taylor Rule

A speech by Lael Brainard on economic headwinds turning to tailwinds suggests a regime shift is at hand at the Fed. Meanwhile, US President Trump is expected to announce tariffs on steel and aluminum. Mexico has already said it would…

Powell's testimony suggests the Fed will be more hawkish than the market expects. I believe long-term interest rates will grind higher. Look at the steepness of the yield curve for signs of over-tightening.

According to Wikipedia, the Taylor rule is a “monetary-policy rule that stipulates how much the central bank should change the nominal interest rate in response to changes in inflation, output, or other economic conditions.” It is named…