The Taylor Rule does that. "According to Taylor's original version of the rule, the nominal interest rate should respond to divergences of actual inflation rat

The Taylor Rule does that. "According to Taylor's original version of the rule, the nominal interest rate should respond to divergences of actual inflation rates from target inflation rates and of actual Gross Domestic Product (GDP) from potential GDP" https://en.wikipedia.org/wiki/Taylor_rule https://en.wikipedia.org/wiki/Taylor_rule Some argue that the reason we have seen such extreme speculative bubbles in recent history is because the Fed has no Taylor Rule-like systemic policy related to market factors. They are free to make policy completely divorced from the market. https://www.ft.com/content/ece92145-443d-4e94-bfa9-7fe06cb9c00a https://www.ft.com/content/ece92145-443d-4e94-bfa9-7fe06cb9c...