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The @federalreserve has released the monetary policy report ahead of Fed Chair Jay Powell's testimony. A few comments on the monetary policy rules section. (1/x)
The report list five different types of rules. While the Fed does not religiously follow a rule, it does look them to see the general pattern of where rates should be. As Powell said last year, "I find these rule prescriptions helpful." (2/x) 
Note, no explicit NGDPLT rule. But as was pointed out by a Fed official, the price level rule is approx the same since it includes an unemp gap term. This is similar to Michael Woodford's call for NGDPLT in 2011 since it approximates an output-gap adj. price level target (3/x).
As I said before, some rules better than others and I see a NGDPLT-type rule as the best. thehill.com/opinion/financ… (More academic discussion here: macromarketmusings.blogspot.com/2019/06/new-ar…) (4/x)
Interestingly, of all the rules the price level/NGDPLT rule shows the Fed still being too tight. (5/x)
This is consistent with the rule I create using my 'sticky forecast' benchmark path for NGDP as found here: papers.ssrn.com/sol3/papers.cf… Shorter version: Fed's been too tight. (6/x)
So while it is useful to look at the all the rules, I find the @federalreserve's price level rule most appropriate. (end).
