Warsh considers reducing Fed meetings as rate guidance faces scrutiny
The New York Times reported Kevin Warsh floated fewer FOMC meetings, a change that would affect how often rate decisions are announced.
By Sofia Marchetti · World Affairs Correspondent
3 min read
Federal Reserve Chairman Kevin Warsh is considering cutting the number of scheduled Fed meetings, the New York Times reported Friday. The idea matters because the Federal Open Market Committee’s calendar sets how often officials announce decisions on interest rates and explain their view of the economy.
Warsh brought up the possible change during this week’s meeting of the FOMC, the Fed’s rate-setting panel, according to the Times. A Fed spokesperson declined to comment, the newspaper reported.
How often does the Fed meet now?
Fed policymakers currently gather eight times a year for two-day policy meetings, after which they release a decision. Under the FOMC’s rules of procedure, the committee must meet in Washington at least four times a year, with additional meetings allowed.
The rules say meetings can be called by the chair of the Board of Governors or requested by any three committee members. The Fed also has held unscheduled meetings during periods of market or economic stress, including at the start of the Covid pandemic in 2020.
The FOMC includes 12 voting members: the seven members of the Fed’s Board of Governors, the New York Fed president, and four of the 12 regional Fed presidents, who rotate into voting seats each year. Warsh, as Fed chair, is part of the Board of Governors.
Why fewer Fed meetings would matter
A smaller meeting calendar would change the rhythm of official Fed decisions and public communication. The current schedule gives investors, banks and borrowers regular checkpoints for possible changes in interest rates, which are the cost of borrowing money and a key tool the Fed uses to influence inflation and economic activity.
The Times report comes as investors have criticized Warsh for limiting signals about where rates may be headed. After the Fed voted 9-3 on Wednesday to leave rates unchanged, investors objected when Warsh did not explain the decision or say whether he would back higher rates if inflation does not slow, according to the report.
The decision to hold rates steady had been widely expected. The reaction centered on Warsh’s communication style at a time when the Fed is under pressure to do more against elevated inflation, according to the report.
What has Warsh said about the FOMC calendar?
At his Senate confirmation hearing in April, Warsh was asked whether he would commit to holding an FOMC meeting at least once every eight weeks. He said he believed the law requires at least four meetings, adding that four would be insufficient and that more meetings were appropriate.
Warsh also said at the hearing that he had not started reviewing meeting schedules for 2027 and later years. The Fed has already posted its remaining 2026 meetings, with gatherings scheduled for September, October and December, and has also posted a 2027 schedule.
The Fed’s website says each meeting date remains tentative until confirmed at the meeting immediately before it. That notice was on the site before Warsh became Fed chair, according to the report.
Warsh, who took over the Fed in May, has signaled other possible changes to how the central bank communicates. He has discussed reducing the number of post-meeting press conferences and has announced five task forces to study possible changes in areas including communications, data, monetary policy operations and the Fed’s balance sheet.
This story draws on original reporting from Fortune.