ANSWER
No, GF does not recommend using steel wool with water based finishes because the particles can become embedded and rust. Some alternatives that GF recommends are Klingspor's Synthetic Wool and Mirca Mirlon 1500 synthetic wool.
Oil Based Finishes:
Steel wool is still an acceptable option with oil finishes. GF recommends using oil free 0000 Wool from Liberon because it doesn't shred as easy as the hardware store brands.
          
      
  Enduro Water-Based Tintable 2K White Poly
  Enduro Water-Based Pro Series White Polyurethane
  Enduro Water-Based Conversion Varnish
  Enduro Water Based Stain Blocker Primer
  Hard Wax Oil & Hardener
  Gel Stains
  Pro Image Flooring Topcoat
  Jen Poly Brushes
  Stir Stix
  Ultraflex Softback Sanding Sponge
