NewsMeter
Federal Reserve Governor Chris Waller has publicly aligned himself with former Fed Governor Kevin Warsh, calling for a fundamental rethink of how the central bank signals future policy moves to investors.
The intervention puts two prominent rate-setters on the same side of a long-running debate over whether forward guidance — the practice of telegraphing rate decisions in advance — does more harm than good.
The Core Argument Against Forward Guidance Forward guidance binds the Fed to a communication path that markets price in before policymakers actually vote.
When economic data shifts, the central bank faces a choice: follow through on prior signals and risk a policy mistake, or reverse course and damage credibility.
Keep reading