Fed Weighs Reducing Policy Meetings from Eight to Six

The Federal Reserve is considering reducing its regular policy meetings from eight to six per year, according to a report in the New York Times.

Chairman Warsh proposed this change, which would include six interest rate meetings and two additional meetings focused on substantive economic topics, as stated by Bank of America in a note.

The current schedule includes eight regularly scheduled Federal Open Market Committee (FOMC) meetings per year, meeting the minimum requirement set by federal law.

Bank of America analysts believe that markets would accept this shift to six policy-focused meetings, but warn that the Fed should announce any changes well in advance to avoid disrupting front-end market operations.