Fed Considers Fewer Rate Meetings as Warsh Reduces Transparency

Federal Reserve officials are considering reducing the number of annual Federal Open Market Committee (FOMC) rate meetings, a potential change from practice since the early 1980s.

Since taking office in May, Chair Kevin Warsh has curtailed forward guidance on future rate moves, sharply shortened post-meeting statements, and offered cryptic answers during news conferences.

Market participants warn that fewer scheduled meetings could raise uncertainty in stocks and bonds by reducing policy visibility and increasing hedging needs.