# It’s Time to Reexamine Monetary Policy Rules

- URL: https://talkfuse.com/story/its-time-to-reexamine-monetary-policy-rules/
- Published: 2026-07-27T10:30:35+00:00
- Updated: 2026-07-27T23:03:58+00:00
- Original publisher: National Review (publisher lean: Right)
- Original article: https://www.nationalreview.com/2026/07/its-time-to-reexamine-monetary-policy-rules/
- Topics: Business, Economy, Government, Politics

## Key points

- Author urges the Federal Reserve to adopt a transparent monetary-policy rule.
- He links discretionary policy to inflation and past economic instability.
- Rules should guide decisions, with explained exceptions for emergencies.

## Summary

The article argues that the US Federal Reserve should reconsider adopting a formal monetary-policy rule to make interest-rate decisions more predictable and accountable. Its author, former congressman Jeb Hensarling, says recent inflation misses and the Federal Reserve’s discretionary approach show the need for reform under Chair Kevin Warsh.

Hensarling highlights the Taylor Rule, which links interest rates to inflation, the neutral rate and the gap between actual and potential output. He contrasts the 1982–2003 “Great Moderation”, when inflation was broadly 2–3%, with the 1970s and the post-pandemic period, arguing that prolonged low rates contributed to damaging inflation. He accepts that rules require exceptions during shocks, but says the Fed should publicly explain any deviation and follow a chosen rule most of the time.

---
Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.