In 2010, Bernanke attempted to justify Greenspan's actions by finding fault in the Taylor rule. Taylor responded by raising questions of Bernanke's analysis. For example, Bernanke did not show any empirical evidence that his altered Taylor's rule was better.
A major point in favor of Taylor's criticism is that the policy failed in preventing a housing bubble. As Greenspan points out, though, much of the blame may be due to creative banking methods that were employed.
Taylor is stating again that the Fed should have begun quantitative easing long ago, and he is supported by a number of top economists from major institutions across the world including Yale and Harvard.
The Fed has pledged to keep interest rates low until unemployment drops below 6%. And it will continue to buy bonds at its current high pace. Forecasts don't expect an increase in interest rates until 2015.
The above analysis does not take into account, a change in the official definition of "unemployment", the cost of inflation, full time employment replaced with part time employment, or decreasing salaries. Nor does it take into account the consequences that will be realized once the Fed stops pumping money into the economy.
Regarding the Federal Reserve, Taylor stated, "I haven't been positive about the Fed for many years. (The Fed) hasn't been very effective. It's hard to point to hard evidence that (they) have been beneficial. I'd like monetary policy to get back to things that work."