Waller: The transmission of monetary policy depends on initial conditions and the flexibility of forward guidance

Federal Reserve Governor Waller put forward two perspectives on the monetary policy transmission mechanism: First, initial conditions are crucial, and monetary policy assessments should be based on the current economic situation rather than historical averages; second, forward guidance can in some cases accelerate policy transmission, but if it is too rigid or lacks flexibility, it will weaken policy effectiveness and delay policy adjustments. Policy formulation needs to maintain adaptability to different scenarios.