Taylor Said to Impress in Fed Race

The transcript discusses the market's perception of hawkish policies, focusing on the Taylor Rule and its implications for interest rates. It highlights the potential impact of political dynamics on monetary policy, particularly in the context of meetings between Yellen and Trump. The discussion also critiques traditional economic theories in a post-global financial crisis world, questioning the applicability of the Taylor Rule and expressing a bullish view on bonds due to a lack of inflationary pressure.

What is the Taylor Rule's suggested interest rate according to the transcript?

• Below 2%

• Exactly 3%

• Above 3%

• Around 2.5%

What is the significance of the potential meeting between Yellen and Trump?

• It is expected to have no impact on the economy.

• It could lead to immediate interest rate cuts.

• It highlights the role of political dynamics in economic decisions.

• It will finalize the interest rate for the next year.

What tool is mentioned for analyzing interest rates using the Taylor Rule?

• Federal Reserve's official website

• Bloomberg's Taylor Rule model

• Wall Street Journal's economic section

• New York Times financial reports

What is the speaker's view on the bond market in the next 18 months?

• Bond yields will remain stable.

• Bond yields will decrease substantially.

• Bond yields will increase significantly.

• Bond yields will fluctuate unpredictably.

What is the speaker's opinion on traditional economic theories in the current economic climate?

• They are fully applicable.

• They are more relevant than ever.

• They are partially applicable.

• They are not applicable.