John Taylor: Fed Funds Should Be 6.5%

Yes, that would be a 600 basis-point jump from where they are now.

Fed Funds are money(s) lent to banks by the Fed or by other banks.  The Fed Fund rate is set by the Federal Reserve, and it's the "wholesale" cost of money.  High cost of money=less inflation.

John Taylor is considered to be THE Milton Friedman monetarist--and that's his conclusion.

Here on the War Room, start at minute 30 or so.  Dave Bradt runs through the numbers and has charts.  You can't see the charts, but you'll understand what he's saying.

This will not be fun.  Jacking Fed Funds that much will put a lot of banks out of the lending business because they won't be migrating their customers to 6.5+++% territory.  That's how the inflation is killed:  no more easy money, serious reduction in demand, and 'fewer dollars chasing goods.'  Some banks may have to disappear, as will some thin-margin businesses.  Ugly.

Will the FRB have the guts to do that?  Biden and his coterie of America-wreckers will scream.  If you think the Musk/Twitter thing caused heads to explode, wait until you hear the screech from Goldie, Chase, and BofA.

This will require a new President.  Let's hope it's not too late.