Mr. McClellan states: I have long advocated for the FOMC getting out of the business of setting short term interest rates and, instead, they should out-source that job to the 2-year T-Note yield. While that out-sourcing might put several American PhD economists out of work, I am okay with that, because it would give us the benefit of having more efficient monetary policy, with less severe bubbles and depressions.
In this article, Mr. McClellan says that it is incumbent on the Fed to gets its Fed Funds target in step with the 2-year T-Note yield. You can access the full report here: McC_041219
