WSJ: Computer Can’t Do the Fed’s Job
Mechanically following the Taylor rule would limit the central bank’s policy tools and harm the economy.
Published December 19, 2016
After extraordinary actions by the Federal Reserve during and following the Great Recession, including quantitative easing programs and record low interest rates, some economists are calling for the Federal Open Market Committee to mechanically follow a simple rule in conducting monetary policy. As a regional Fed bank president and member of the FOMC, I believe this would unduly limit the Fed’s policy tools and ultimately harm the economy and in turn employment.
Read the rest of Neel Kashkari's Op-Ed for the Wall Street Journal.