The 'Rockin' in the Free World' singer expressed his admiration for Swift during a press conference at the Country Music Hall of Fame, explaining that the 'Back to December' singer has shown tremendous poise when criticised.
"I like Taylor Swift. I like listening to her," Young said. "I kind of like watching her respond to all the attacks. I like the ways she's defining herself. So I keep my eye on it."
Young also noted that he prefers never to be pigeonholed into any single musical genre because constricting expectations serve only to stifle his creativity.
"I don't like boundaries. They don't really work. They do for some people. It all started when they started formatting radio and separating things into different little areas that they could talk about, and then restricting who would play what," the 'Heart of Gold' musician remarked.
"That was very counterproductive, when they took the decision-making from the individuals and gave it to the corporate heads. That was destructive to music. But we're coming back."
While Young has gained great acclaim for his rock and folk LPs, he has also released several country records such as Harvest Moon and Silver and Gold, as well as the electronica-influenced Trans.
Young is expected to regroup with Buffalo Springfield for another round of live concerts this fall.
Bon Iver frontman Justin Vernon recently revealed that he's been approached by Young to collaborate on an upcoming project.
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Watch Neil Young's music video for 'Harvest Moon' below: