The Taylor Rule: Hope Springs Eternal

The video discusses the Taylor Rule and its application in managing interest rates by the Federal Reserve. It highlights the challenges faced by the Fed in adjusting rates and the impact of market expectations. The discussion extends to global influences on US yields and the dynamics of the yield curve and bond market. The importance of a strategic approach in monetary policy is emphasized.

What are the potential consequences of keeping interest rates low for an extended period?

In what ways can the Federal Reserve influence the yield curve?