Federal Reserve Governor Waller, speaking at a monetary policy conference in Rome, highlighted the need for flexibility in policy decisions, suggesting that forward guidance may be abandoned when necessary. Waller emphasized that monetary policy should be responsive to current economic conditions rather than relying on historical averages. He noted that large economic shocks can alter the effectiveness of policy tools, such as the Phillips curve, and that rigid forward guidance could hinder timely policy adjustments. The Federal Reserve has formed a working group to assess the role of forward guidance, with Waller advocating for decisions based on real-time data.