Fed Considers Cutting FOMC Meetings from Eight to Six per Year

The Federal Reserve is considering reducing the frequency of its regular meetings from eight to six per year. This change would mark a significant shift in the monetary policy framework that has been in place since the early 1980s.

According to Bloomberg, Fed Chair Kevin Warsh proposed reviewing both the monetary policy decision-making process and the committee's meeting schedule at last week's FOMC meeting. One possible outcome is reducing the number of regular meetings to six per year, while using the other two meetings to discuss broader economic issues.

The officials also discussed aligning the timing of monetary policy decisions with the release schedule for major economic data to improve the efficiency of policy deliberations. The Fed has held eight regular FOMC meetings a year since 1980, but this change could simplify the decision-making process and make it more aligned with key economic indicators.