That is, the Federal Reserve should ensure that if inflation is above target or if GDP growth is too fast, it should raise rates. This is vice versa; rates should be lowered if inflation is below target or if GDP growth is slow. Neutral rates are set when GDP growth is at its potential and inflation reaches target. Basically, the short-term goal of the Taylor rule is to stabilize the economy, but in the long run it is to stabilize inflation. Research has shown that to better understand price levels and inflation, applying a moving average of different price levels could provide a trend and reduce fluctuations. Following the federal funds rate to find trends, the same functions should be performed on an interest rate chart every time