Powell Considers Radical Overhaul of FOMC Meeting Schedule

Jerome Powell, Chairman of the Federal Reserve, is considering reducing the frequency of Federal Open Market Committee (FOMC) meetings. This would be a significant change in the Fed's operations, and one of the most substantial changes since Powell took office.

A source close to the matter told The New York Times that Powell floated the idea at the recent FOMC meeting. Any changes to the schedule may be finalized by the next meeting in mid-September, but the actual implementation could take longer.

Reducing the number of meetings would mean fewer opportunities for rate votes and would break with a 40-year tradition of holding meetings every six weeks. This change could weaken the Fed's ability to respond to changes in inflation and employment markets, as well as reduce the channels through which markets obtain monetary policy signals.

Powell has suggested that four meetings a year are not enough and that more frequent meetings would be desirable. However, this new proposal is at odds with his previous stance.