Federal Reserve Governor Christopher Waller says “forward guidance” about the future path of interest rates can be valuable, but it should remain flexible. In remarks covered by Bloomberg, Waller argues that signals from policymakers can help inform markets and support financial conditions when they are communicated carefully. He cautions that guidance should not be treated as a rigid promise, implying policymakers may need to adjust their messaging as economic and financial conditions evolve. Investing.com similarly reports that Waller views forward guidance as useful while emphasizing the need for adaptability, reflecting a balance between clarity for markets and responsiveness to changing data. The comments are part of the Fed’s ongoing discussion of how it communicates monetary policy and manages expectations regarding rates. Overall, the sources agree that forward guidance can play a role in shaping how investors interpret the Fed’s reaction function, provided it is delivered in a way that allows for updates rather than locking in a predetermined path.