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Monetary policy

Monetary policy · 11 Oct 2026

What the Taylor rule says about the Fed reserve policy rate now

A 33-year-old formula is still the benchmark for judging interest rates, and today it points above the Fed's 3.75 to 4% under five of the six versions I tested. The reasons the Fed has not followed it are as informative as the rule itself.

Monetary policy · 10 Oct 2026

Why the Fed's decisions land in Abu Dhabi

The dirham has been fixed to the dollar since 1997. That single choice turns every Federal Reserve decision into a local event, right down to the monthly repayment on a UAE home loan.