Description: A blog by John B. Taylor
The President of the Federal Reserve Bank of St. Louis, James Bullard, posted a very clear analysis of this question, addressing whether the Federal Reserve had raised the federal funds interest rate enough. The title of his analysis is what I used to title this blog.
His analysis is based primarily on the Taylor Rule. He concludes that the federal funds rate is just barely high enough: https://www.stlouisfed.org/publications/regional-economist/2023/june/is-monetary-policy-sufficiently-restrictive .
I recommend this piece. It refers to the paper he gave at the annual monetary Policy Conference at Hoover and Stanford last month. It shows that there is still uncertainty, and, in my view based on the Taylor Rule, there is still room to raise the federal funds rate, but of course much less that before the Fed began to adjust.
Hoover Institution
Chicago Boyz – Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spir
I.A. Grea – Politics as I see it
The Pretense of Knowledge
Hoover Institution
The Pelican Report
Chicago Boyz – Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spir