Fed’s Waller says now is not the time for forward guidance
The Fed’s Waller stated that the current economic conditions do not warrant the use of forward guidance. He cited persistently better and stronger job reports as a key factor.
The Fed official also mentioned that AI may be affecting financial conditions, and if it were to decline, it could lead to significant changes in financial conditions.
Waller noted that he sees no reason to be in a scarce reserves regime and is open to shrinking the balance sheet if banks do not need as many reserves.
He emphasized the importance of transparency, stating that withholding information is not beneficial and that surprising people is not a good idea.