Fed's Waller Defends Forward Guidance as Chair Warsh Quietly Strips It From FOMC Statements
- Fed Governor Christopher Waller told a Bank of Italy conference in Rome on July 6, 2026 that forward guidance is "more art than science" and warned against rigid commitments, defending the pre-Warsh approach (Reuters).
- New Chair Kevin Warsh has dropped the Fed's rate-path projections and removed forward-guidance language from recent FOMC statements, signaling a more cautious, data-driven communication regime ahead of the June 16-17 minutes release on July 8.
- The split matters for markets: investors parsing Wednesday's FOMC minutes will look for any signal of which governors back Warsh's anti-guidance stance and how the median-dot path is being redrawn.