Economics
Taylor’s Walk on Supply Side May Leave Him More Dove Than Yellen
- Half of Goldman clients think he’s more hawkish than market
- His support of tax cuts may make him reluctant to hike rates
Zentner: A Powell, Taylor Fed Hawkish to Markets
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A Federal Reserve led by Stanford University professor John Taylor may end up being more relaxed about inflation than current Chair Janet Yellen when it comes to the impact of President Donald Trump’s tax cut plan.
While Taylor believes the administration can substantially lift non-inflationary economic growth through deregulation and tax changes, Yellen is more cautious. That suggests that the Republican Taylor would be less prone than the Democrat Yellen to raise interest rates in response to a policy-driven economic pick-up.