24. Federal Reserve · Minor · Needs Congress
Consider NGDP targeting or a Taylor Rule as the Fed's monetary rule
Printed page 740 24. Federal Reserve
“Either rule likely outperforms a strict inflation target and greatly outperforms the Fed’s current pseudo-inflation target. … Capable elected officials must persuade the public that the advantages of NGDP targeting and the Taylor Rule, especially in terms of supporting labor markets, outweigh the disadvantages.”
What has happened
- Not started
The Federal Reserve reviewed its framework and adopted neither rule. The Federal Open Market Committee approved updates to its Statement on Longer-Run Goals and Monetary Policy Strategy on August 22, 2025, after a review that included Fed Listens events and a research conference; the revised statement keeps a discretionary framework built on the target range for the federal funds rate and a two percent longer-run inflation goal, and adopts no nominal GDP target and no Taylor Rule. A Federal Register full-text search for the quoted phrase "nominal GDP targeting" since 2025-01-20 returns zero documents and "Taylor Rule" returns one, unrelated. No bill in the 119th Congress would require either rule.
Research log
What was searched, and what didn’t count as evidence
Research notes
Evidence is attached to this not started event because the record shows the question put and answered the other way: the framework review is exactly the proceeding in which a monetary rule would have been adopted, and it kept discretion.
The same review did deliver #2025 (the end of flexible average inflation targeting), which is why that item is done and this one is not. Cluster negative search shared with #2021 and #2024.
- Action
- create
- Object
- NGDP targeting / Taylor Rule monetary policy rule
- ID
- 2022