The Federal Reserve would be required to have a “systematic” rule for adjusting interest rates under a proposal raised today by Stanford University Professor John Taylor, a critic of the Fed’s monetary stimulus.
The reason Hu Jintao decided to visit the U.S. this month is that the Chinese leader wants to know when the U.S. economy and its currency will be stable and strong again. It’s good the Chinese are known for patience because Hu may have to wait a while.
The gap in Canadian and U.S. benchmark interest rates is at a 15-year high based on the Taylor rule formula for determining optimal rates, signaling borrowing costs are poised to rise further in Canada.
John Taylor, the founder of what was once the world’s biggest currency hedge fund, said he plans re- enter the foreign-exchange asset-management business again one day in the wake of the bankruptcy of FX Concepts LLC.