Federal Reserve Watch for July 6: Waller Notes Two Sides of Forward Guidance
Fed Governor Christopher Waller (voter) said that forward guidance is useful in some cases, including as tool in place of actual rate actions, but requires flexibility when conditions evolve differently from was expected. Recent comments of note: (July 1) Fed Chair Kevin Warsh (voter) repeated that the FOMC will work to maintain price stability and said that prices are too high but again avoided giving any forward guidance. (June 26) Minneapolis Fed President Neel Kashkari (voter) said that he expects that rising inflation will necessitate a rate increase at some point this year.
Fed Governor Christopher Waller (voter) said that forward guidance is useful in some cases, including as tool in place of actual rate actions, but requires flexibility when conditions evolve differently from was expected.
Recent comments of note: (July 1) Fed Chair Kevin Warsh (voter) repeated that the FOMC will work to maintain price stability and said that prices are too high but again avoided giving any forward guidance. (June 26) Minneapolis Fed President Neel Kashkari (voter) said that he expects that rising inflation will necessitate a rate increase at some point this year.