Fed's Waller (voter, hawk) makes no remarks on monetary policy or the economic outlook; says forward guidance can speed the impact of monetary policy, can be a 'valuable tool'

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FORWARD GUIDANCE:

  • Says that when it works, forward guidance can speed the impact of monetary policy, as in late 2021
  • Forward guidance can be a ‘valuable tool’ that has at times strengthened policymaking and will continue to be useful
  • Forward guidance can be a hindrance if it is ‘too strong or rigid’
  • Forward guidance also ‘problematic’ when policymakers confront different economic outcomes all with a significant probability of occurring
  • in some cases, it's best not to use it at all.

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