I don’t understand the strait strategy? Why don’t you just take some empty old oil tankers run them through the strait establishing a safe route. Then destroy any vessel without a IFF code clearance that tries to enter that route? Take the Karg island. Leave economic infrastructure Iran alone for now.
@AJCassavell This team thinks it has already made playoffs so do all the sports announcers. I don’t. I s this season going to end up Just like Diaz pulled up short on a run the other day?
@gatorgar There is no guard at the entrance to the church the door is open for anyone who would like to attend. Please do not participate in the sacrements if not initiated. All are welcome.
Federal Funds Rate Algorithm Act of 2025Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,SECTION 1. SHORT TITLE.This Act may be cited as the "Federal Funds Rate Algorithm Act of 2025".SECTION 2. FINDINGS AND PURPOSE.(a) Findings.—Congress finds the following:
(1) The Federal Open Market Committee (FOMC) of the Federal Reserve System is responsible for directing open-market operations to influence the federal funds rate, which affects monetary policy, economic growth, employment, and inflation.
(2) The Taylor Rule provides a systematic framework for setting interest rates based on economic indicators, including inflation deviations from target and the output gap.
(3) Advances in artificial intelligence (AI) and real-time data processing enable more objective, timely, and data-driven monetary policy decisions, reducing human bias and enhancing transparency.
(4) Mandating an AI-generated algorithm for determining the federal funds rate will promote consistency with the Federal Reserve's dual mandate of maximum employment and price stability (targeting 2 percent inflation), as outlined in section 2A of the Federal Reserve Act (12 U.S.C. 225a).(b) Purpose.—The purpose of this Act is to amend the Federal Reserve Act to require that the federal funds rate be determined as the output of an AI-generated algorithm incorporating the Taylor Rule and real-time economic data.SECTION 3. AMENDMENTS TO THE FEDERAL RESERVE ACT.Section 12A of the Federal Reserve Act (12 U.S.C. 263) is amended by adding at the end the following new subsection:"(d) Algorithmic Determination of Federal Funds Rate.—
(1) Requirement.—Notwithstanding any other provision of law, beginning on the effective date of this subsection, the federal funds rate target range shall be determined exclusively as the output of an artificial intelligence (AI)-generated algorithm developed and maintained by the Board of Governors of the Federal Reserve System. The algorithm shall—
(A) incorporate the Taylor Rule as its core framework, using the following formula as a baseline:r = r^* + \pi + 0.5(\pi - \pi^*) + 0.5(y - y^*)where—
(i) r is the nominal federal funds rate;
(ii) r^* is the equilibrium real interest rate, estimated in real time by the algorithm based on historical and current economic data;
(iii) \pi is the current inflation rate, measured by the core Personal Consumption Expenditures (PCE) price index;
(iv) \pi^* is the target inflation rate of 2 percent; and
(v) (y - y^*) is the output gap, representing the difference between actual gross domestic product (GDP) and potential GDP, estimated using Okun's Law or equivalent real-time proxies;(B) utilize real-time or near-real-time economic data from official sources, including but not limited to—
(i) inflation data from the Bureau of Economic Analysis (BEA);
(ii) unemployment and employment data from the Bureau of Labor Statistics (BLS);
(iii) GDP and output gap estimates from the Congressional Budget Office (CBO), the BEA, or Federal Reserve models such as GDPNow from the Federal Reserve Bank of Atlanta;
(iv) neutral interest rate estimates from Federal Reserve models, such as the Laubach-Williams model; and
(v) other relevant indicators, such as consumer spending, wage growth, and financial market conditions, sourced from the Federal Reserve Economic Data (FRED) system or equivalent;(C) include an adjustment factor (A) to account for external shocks, uncertainties, or qualitative considerations (e.g., geopolitical events, tariffs, or pandemics), such that the final formula is:r = r^* + \pi + 0.5(\pi - \pi^*) + 0.5(y - y^*) + Awhere A is determined by the AI algorithm based on machine learning analysis of historical precedents and current market signals (e.g., federal funds futures from the CME Group); and(D) update the federal funds rate target range automatically on a monthly basis or more frequently if real-time data triggers a threshold deviation (e.g., inflation exceeding target by 0.5 percent or unemployment rising by 0.2 percent), with public disclosure of the calculation within 24 hours.(2) AI Development and Oversight.—
(A) The Board of Governors shall develop, test, and deploy the AI algorithm using transparent, auditable machine learning techniques, including but not limited to econometric models, neural networks, and dynamic stochastic general equilibrium (DSGE) simulations.
(B) The algorithm shall be trained on historical economic data while ensuring compliance with the Federal Reserve's dual mandate.
(C) The Board shall conduct annual independent audits of the algorithm by a third-party entity approved by Congress, with results reported to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
(D) The FOMC shall retain authority to override the algorithm's output in extraordinary circumstances (e.g., national emergencies) by a supermajority vote of at least two-thirds of its members, with a detailed public justification provided within 48 hours.(3) Transparency and Reporting.—
(A) The Board shall publish the full source code, methodology, and real-time data inputs of the algorithm on a public website maintained by the Federal Reserve.
(B) Quarterly reports on the algorithm's performance, including deviations from the Taylor Rule baseline and the rationale for any adjustment factor (A), shall be submitted to Congress.(4) Definitions.—For purposes of this subsection—
(A) 'Artificial intelligence' or 'AI' means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments.
(B) 'Real-time data' means economic indicators updated at least daily, or as frequently as available from official sources, using automated data feeds or APIs.
(C) 'Taylor Rule' means the monetary policy guideline developed by economist John B. Taylor, as described in paragraph (1)(A), or any updated variant approved by the Board.(5) Implementation.—The Board of Governors shall promulgate regulations to implement this subsection not later than 180 days after the date of enactment of the Federal Funds Rate Algorithm Act of 2025.".SECTION 4. CONFORMING AMENDMENTS.(a) Section 2A of the Federal Reserve Act (12 U.S.C. 225a) is amended by inserting after "maximum employment, stable prices," the following: "through the algorithmic determination of the federal funds rate as provided in section 12A(d),".
(b) Any reference in Federal law or regulation to the Federal Open Market Committee's discretionary setting of the federal funds rate shall be construed as a reference to the algorithmic determination under section 12A(d) of the Federal Reserve Act.SECTION 5. EFFECTIVE DATE.This Act and the amendments made by this Act shall take effect 1 year after the date of enactment.
The setting of the Fed Funds Rate needs to be updated to an AI generated algorithm based on the ability to generate a real time Fed Funds rate using real time data inputs that are transparent and fully accessible to anyone. Just ask Grok to calculate the what the Fed Funds Rate should be based on Real time Data using the Taylor rule.
This process based on a early 1900's statute and approach is arcain, outdated and costing billions in excessive interest rate charges to the American people. Powell knows this, and won't cut rates for egocentric I hate Trump pathological reasons. The Fed Rate is at last 15 more than it should be.
The FED Funds rate should be calculated using an Algorithm (modified Taylor Rule) based on AI generated and real time data. Why Doesn't President Trump Just executive order that? The 1930's approach is a little outdated. And how much does that Jackson Hole WY boondoggle cost the American Taxpayers every year?
Setting the Fed Funds rate should be done via an automated AI algorithm based on the modified Taylor Rule. It should be real time and adjusted daily based on actual and available real time economic data. Congress can enact legislation to do this or maybe the president can make an executive order to this effect. Based on this available algorithm current Fed Funds Rate should be at 3.25%.