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Taylor Rule

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Fundamental Analysis forecasting statistics taylor rule taylors inflation CPI RATE target fed interest
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fundamental forecasting statistics taylor rule taylors inflation cpi rate target fed interest
The Taylor rule is a simple formula that John Taylor devised to guide policymakers. It calculates what the federal funds rate should be, as a function of the output gap and current inflation. Here, we measure the output gap as the difference between potential output and real GDP. Inflation is measured by changes in the CPI, and we use a target inflation rate of 2%. We also assume a steady-state real interest rate of 2%.
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Updated
Release Notes:
Set your chart timeframe to 3 months (quarterly), otherwise the values are completely wrong.
Release Notes:
Moving Average
Release Notes:
Now works on all timeframes
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