# Should US interest rates be even higher? This rule says yes

> An FXStreet analysis argues the Taylor Rule implies US policy rates should be higher than the current 3.50%-3.75% range given above-target inflation and resilient growth. The Fed remains on hold, weighing uncertainty and lagged tightening effects.

- Date: 2026-03-31 · published 2026-03-31T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/20354-should-us-interest-rates-be-even-higher-this-rule-says-yes
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Divergence between rule-based guidance and Fed policy adds uncertainty to rate expectations, which can drive dollar moves that affect dollar-priced commodities.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-10-15 | [Fed's Bullard says boost to dollar from interest rate hikes may ease \| Reuters](https://feedsoft.ai/events/39330-fed-s-bullard-says-boost-to-dollar-from-interest-rate-hikes-may-ease-reuters.md) | -0.5% | -3.8% |
| DXY | 2017-12-14 | [Bank of England unanimously votes to hold interest rates, shifting focus to inflation](https://feedsoft.ai/events/67720-bank-of-england-unanimously-votes-to-hold-interest-rates-shifting-focus-to.md) | -0.4% | -2.1% |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |
| DXY | 2018-02-26 | [The one interest rate differential that is driving the US dollar \| ING THINK](https://feedsoft.ai/events/66696-the-one-interest-rate-differential-that-is-driving-the-us-dollar-ing-think.md) | +0.6% | -0.3% |
| DXY | 2021-01-28 | [China's yuan inches up as tight liquidity pushes interbank rates higher \| Financial Post](https://feedsoft.ai/events/49361-china-s-yuan-inches-up-as-tight-liquidity-pushes-interbank-rates-higher.md) | +0.2% | -0.1% |

## Sources

- fxstreet.com: https://www.fxstreet.com/analysis/should-us-interest-rates-be-even-higher-this-rule-says-yes-202603311354

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.