Taylor was promoted to rear admiral on October 1, 1922. He was director of fleet training from 1925 to 1927, and afterward commanded the 3rd Battleship Division of the Battle Fleet. was his flagship. During fleet exercises in August 1927, he was informally reprimanded by his superior, Admiral Henry A. Wiley (Commander-in-Chief, United States Fleet), for launching planes from aircraft carriers after confronting an enemy rather than using his ships' superior speed to escape. In September 1927, Taylor made Joseph J. Clark (later an admiral himself who played a significant role in the Battle of the Philippine Sea) his division chief of staff.