A simple formula tells central banks exactly how much to raise rates

In 1993 economist John Taylor proposed a formula for the ideal interest rate, based on just two numbers: how far inflation sits above target and how far output sits below potential. The rule tracked the Fed's actual decisions from 1987 to 1992 remarkably closely, turning monetary policy from pure judgment into something close to a formula.

— John B. Taylor, Discretion versus Policy Rules in Practice — Carnegie-Rochester Conference Series on Public Policy, Vol. 39, 1993