“Wish I had kept my mouth shut”!

Very soon to be four year anniversary of this prediction:

May 13 (Bloomberg) — The Federal Reserve may soon need to raise interest rates, said John Taylor, the former Treasury official who devised the “Taylor Rule,” a formula for rate- setting based on the outlook for inflation and growth.

“My calculation implies we may not have as much time before the Fed has to remove excess reserves and raise the rate,” Taylor, a Treasury undersecretary under President George W. Bush from 2001 to 2005, said yesterday at an Atlanta Fed conference in Jekyll Island, Georgia.

At that time Scott Sumner had just started saying quite the opposite!

One thought on ““Wish I had kept my mouth shut”!

  1. John Taylor is a gentleman and a nice guy.

    Buut sheesh! He is part of that branch of economists who do not seem to recognize how the world’s economies have changed.

    The devil not is not inflation, it is slow growth, and it may even be deflation, if Japan is a clue.

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