The textbook says that fixing an interest rate is pro-cyclical, but the Fed now uses something like a Taylor Rule, which targets an interest rate. Why isn't this a contradiction?

Question

Quizplus · Accepted Answer

The Answer of The textbook says that fixing an interest rate is pro-cyclical, but the Fed now uses something like a Taylor Rule, which targets an interest rate. Why isn't this a contradiction?

The Textbook Says That Fixing an Interest Rate Is Pro-Cyclical