Stanford's Taylor: Fed Is Off-Track, Needs to Adjust

The transcript discusses the Federal Reserve's delayed response to inflation, analyzing the flexibility in its policy and the implications of its new framework. It evaluates the impact of the pandemic on structural economic shifts and debates the validity of supply side issues as an excuse for the Fed's slow response. The need for a systematic rate increase and addressing inflation without causing an economic downturn is emphasized.

What are some reasons mentioned for the Federal Reserve being behind the curve?

How does the speaker perceive the flexibility of the Fed's current policy?

What implications does the speaker suggest about the Taylor rule and its effectiveness?

What structural shifts does the speaker refer to that may have been created by the pandemic?

What does the speaker suggest about the relationship between supply-side issues and the Fed's response?

How does the speaker view the potential for a soft ending to the economy running hot?

What adjustments does the speaker believe the Fed should make regarding interest rates?