John Taylor's delusion of central bank stability

The Fed’s State of Exception

Despite the recent surge of inflation in the United States, the Federal Reserve is keeping the federal funds rate in a range far below what its own monetary-policy rules would prescribe. But since history shows that this deviation cannot last indefinitely, it would be better to normalize sooner rather than later.

Central banks are a trilemma, John. No one is faking it anymore. 

If there is one rule for the Fed, it is to target its own trilemma, and we need to take that point of view. Otherwise we will suffer John Taylors yapping at us forever.