FFR GDP gap R A A = + + + *100 A P P GDP GDP where GDP gap GDP = 15. Refer to the Taylor Rule that targets the overnight borrowing rate (the US' policy rate). Assuming the targeted long-run equilibrium interest rate is 2%, current inflation level in the US is 6.4%, and that the US economy is performing about 1% better than projected GDP, the Taylor Rule suggests that the targeted overnight (policy) rate should be