Central banks reconsider traditional forward guidance, Mohamed A. El-Erian notes

Central banks reconsider traditional forward guidance, Mohamed A. El-Erian notes
Central banks shift guidance strategy

Mohamed A. El-Erian, president at Queens' College, University of Cambridge, highlights a speech by Federal Reserve Governor Chris Waller on forward guidance at a Bank of Italy conference.

According to El-Erian, more central banks are beginning to reevaluate their previous commitment to traditional forward guidance, driven by ongoing intellectual developments in monetary policy.

Earlier this week, El-Erian noted that key U.S. PCE inflation data would be closely watched by markets and the Federal Reserve. He also discussed U.S. economic and market trends on CNBC. These recent comments come as central banks reconsider aspects of their policy communication.

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