

You make the call people, You make the call.
The Federal Reserve does not conduct monetary policy to influence stock prices, regardless of whether the stock market is rising or falling. The Fed does, however, try to create the macroeconomic stability needed to achieve its mandates -- and this is where Mr. Taylor's work comes in. Over the past couple of decades, the FOMC's interest-rate behavior has been replicated closely by a forward- looking Taylor Rule, developed by my Dallas Fed colleague Evan Koenig.
Now Evan Koenig is a good guy, and I don't have any beef with him, and maybe there is some kind of verision of a Taylor rule that the Fed could be said to be following (I couldn't find any articles with Taylor Rule in the title on Koenig's vita), but the Fed has never announced or committed to following a Taylor Rule, and certainly they don't always/often follow Taylor's version of the Taylor Rule.
I've used this graph before, but here is the Fed funds rate under Alan Greenspan from 2001-2005 compared to the ideal rate setting from the classic Taylor Rule:
"I don't know what else they could do. I guess they could put it on each one of the seats."
So far not so good: the 'Pokes are 4-3 so far this year and their recent victory against Nebraska induced that august institution to fire its athletic director, even though they had just just given him a new 5 year contract over the summer. I guess it's still not cool to lose to OSU, where's that checkbook T Boone??I guess I'll have to make do with this until we get the Sonics!!