Fed Officials Weigh Cutting Interest-Rate Meetings to Six a Year
US Federal Reserve officials are considering reducing the number of interest-rate meetings from eight to six per year, according to a proposal by Chairman Kevin Warsh. This change could have significant implications for how the central bank operates and its communication with the public.
The idea has gained traction after at least a third of Fed officials expressed support for cutting the meeting schedule, including regional presidents Beth Hammack, Jeffrey Schmid, and Anna Paulson. Paulson told CNBC that reviewing the central bank's operations is a worthwhile exercise, and she is open to considering changes.
Warsh first floated the idea at the July meeting, suggesting holding six meetings per year with two separate sessions for discussing economic issues. He argued that this schedule would allow more information to accumulate between meetings and give policymakers time to review strategic monetary policy issues.
The proposal could be discussed in detail as early as the next policy meeting on the 15th, which will address elevated inflation and potential interest-rate hikes. However, some officials have cautioned that further analysis is needed before making any changes.