Christopher Waller said in Rome that Fed policymakers should still use forward guidance on interest rates, provided it is deployed carefully and flexibly.
The remarks directly contrast with new Fed Chairman Kevin Warsh, who has vowed to move the central bank away from explicit rate-path signaling toward an approach more tightly tied to incoming economic data.
Bank of Italy-hosted comments from a sitting Fed governor highlight an early policy debate over how the Warsh-led Fed should communicate future rate moves.