Stanford's Taylor Says Fed Knows They're Behind Curve

The transcript discusses the Taylor rule and the Federal Reserve's position on interest rates, highlighting that the Fed is behind the curve. It explores the Fed's interest rate forecasts, aiming for a 3% target, and the strategic approach to achieve it. The discussion includes market expectations, Fed communication, and the factors influencing the Fed's decisions, such as market conditions and consensus within the FOMC.

What is the current forecasted interest rate by the Fed according to the Taylor rule?

• 1%

• 4%

• 2%

• 3%

What is the Fed's strategy regarding interest rate changes?

• Immediate normalization

• Rapid increases

• Gradual and strategic increases

• No changes

How many interest rate increases are some Fed members predicting for 2017?

• Three

• Four

• One

• Two

What is the main reason for the Fed's decision to increase interest rate expectations in March?

• New economic data

• Market conditions

• Political pressure

• Public demand

What was the probability change for a rate move in March over a few days?

• From 40 to 90

• From 30 to 70

• From 20 to 80

• From 10 to 50