A price system that is accurate in that way supports the market allocation of all resources, including capital, to their most productive uses. At times, markets and Federal Reserve policy are complementary in an additional way.
The success of the Taylor rule in capturing the broad contour of policy actions in recent years has prompted an enormous amount of economic research in search of refinements to or extensions of the original Taylor rule that could provide an even more precise guide for central bankers - in effect, a rule that could serve as an "automatic pilot" for monetary policy.