Hoover Institution fellow Kevin Warsh discusses Fed comments on the US dollar as well as what the Fed is doing to meet inflation targets.

Hoover Institution fellow Kevin Warsh discusses emerging markets and how the Fed has become a prisoner of market expectations. 

In a recent Wall Street Journal piece, “Think You Know the Natural Rate of Interest? Think Again,” James Mackintosh warns about the high level of uncertainty in recent estimates of the equilibrium interest rate—commonly called r* or the natural rate—that are being factored into monetary policy decisions by the Fed.

Simplicity isn't always a virtue, but when it comes to complex decision-making processes—for example, a central bank setting a policy rate—having simple benchmarks is often helpful. As students and observers of monetary policy well know, the common currency in the central banking world is the so-called "Taylor rule."