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Fed Candidate John Taylor Defends Rules-Based Monetary Policy

  • Taylor says the Fed needs a more transparent policy strategy
  • Policy rule never meant to tie a central bank’s hands
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Fed's Rosengren Sees No Sudden Shifts by Next Fed Chair

John Taylor, a candidate to succeed Janet Yellen at the helm of the Federal Reserve, said his advocacy for rules-based monetary policy isn’t an argument for overly constraining central bankers in setting interest rates.

“I don’t think rules should be used as a way to tie central bankers’ hands,” Taylor said Friday at a conference hosted by the Boston Fed. “But there are reasons to run policy with a strategy.”