Fed Needs to Hike Rates a Bit More, Taylor Rule’s Creator Says

  • Economist’s eponymous rule for guiding policy is used globally
  • Taylor advocates for further drop in budget gap; freer trade

John Taylor 

Photographer: Andrew Harrer/Bloomberg 

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The Federal Reserve needs to raise interest rates a bit further to rein in an inflation rate that’s too high, monetary expert John Taylor said.

“They’ve had a big adjustment over the last couple of years,” the Stanford University professor told a webinar hosted by the American Council for Capital Formation on Thursday, adding, “I think they should go a little bit higher.”