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Federal Reserve Governor Chris Waller has publicly sided with new Fed Chair Kevin Warsh in calling for a fundamental rethink of how the central bank communicates its policy intentions to financial markets.
The alignment between the two officials signals that Warsh's push to revamp forward guidance is gaining traction within the Fed's inner circle, with implications for how investors read and price rate signals going forward.
Two Fed Voices, One Direction on Communication Warsh, who took the chair role at the Federal Reserve, has made reforming the institution's communications framework a stated priority.
Forward guidance — the practice of telegraphing future rate decisions to condition market expectations — has been central to the Fed's policy toolkit for years.
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