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Hoover Institution senior fellow John Taylor weighs in on the future of the Federal Reserve.
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And the man at our joining me now with more on the Fed reserve and they had demanded that two people.
The Federal Reserve uses what's called the Taylor -- to decide -- -- policy.
Well -- is Taylor John Taylor.
And he is a professor.
At Stanford University a senior fellow at the Hoover institution as well and -- up first principles.
Five keys to restoring America's prosperity.
John -- -- stay on the Federal Reserve it's good to see by the way how much they give.
How much trouble.
Has the Federal Reserve soda for this country and outlay -- whether you wanna talk about weakening our dollar what do you wanna talk about fermenting inflation -- How much trouble -- we -- just because of what the Fed has been doing in recent years.
But the Fed has gotten quite unpredictable in its policy -- like to look back really see good periods and monetary.
Policy the 80s90s until recently we had.
You know appropriate the Fed was pretty predictable you know what they would do.
It -- created long expansions.
And recently that's gotten to these quantitative easing which is in some people like some people don't.
And it's been very hard to predict what the Fed's been doing I think that's been a negative in terms of the economy.
So to me if somehow the -- can get back to the kind of strategy on this are the same but some kind of strategy -- the -- be a good thing.
Well did to focus in on that -- the bond buying by the quantitative easing that's been going on and the most recent effort being.
Focused on mortgage securities John was that a mistake broadly speaking do you like -- for do you not like it.
No I don't like at night I think it's it's not the kind of thing the monetary policy.
I should be doing is focused on a particular.
Sector that hasn't.
Seem bill worked in the past.
Monetary policy should be thinking about the whole economy.
And when they start to do these specific things in May look good for a day or two but then.
You just don't know what's gonna happen and then then people get used to it and been traders start to speculator -- that causes.
More uncertainty so I'd -- like them to.
Go back to the kind of policy that I -- worked in the past I think it would have been better if we had followed that starting 2009 after the after the panic I think the recovery would have been better if that kind of more predictable policy have been.
All of do you think that interest rates in the longer term interest rates where would they be if they had not done that went there and -- -- below one point 8% right now.
The ten year well I think it.
I think the economy would have been stronger in and I say that has been -- in the context of overall economic policy fiscal policy regulatory policy.
Has been uncertain as well.
And so none of that has helped the economy is so if we could have had.
Altogether.
All of a policy that.
Was more conducive to growth the growth would have been stronger and of course in that context you'd expect interest rates.
To have been higher for good reasons -- you see demand for capital.
Moving up much more than it has recently.
Well that's -- you you stay right there John's gonna stay with this good that's -- -- that a focus on.
How much the Federal Reserve has helped.
Lawmakers continued to borrowed money hand over fist and spend it.
And how much of a break they've been getting -- -- war here's what I'm asked John Zogby -- to think about it in the break John.
Worse do you have done -- your job the Federal Reserve are lawmakers in congress that would be right back John you stay right there don't.
