Stanford's Taylor Says Fed Should Aim For 5% Funds Rate

Stanford University Professor of Economics John Taylor discusses Federal Reserve policy and the state of the U.S. economy. He is the author of an influential policy-setting rule of thumb called the "Taylor rule," which basically is a formula that can be used to predict or guide how central banks should alter interest rates due to changes in the economy. And recommends that the Fed should raise interest rates when inflation or GDP growth rates are higher than desired. Taylor speaks on "Bloomberg Daybreak: Australia."

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