Warsh Considers Cutting Fed Policy Meeting Frequency

Federal Reserve Chairman Kevin Warsh is considering reducing the frequency of the central bank's policy-setting meetings, according to a report. This potential overhaul would mark one of the most significant operational changes in decades.

The current schedule calls for eight bi-monthly gatherings per year, but Warsh has proposed scaling back to fewer meetings. Under the Banking Act of 1935, the Federal Open Market Committee (FOMC) is legally mandated to meet at least four times annually.

This move aligns with Warsh's broader efforts to reform central bank operations, which include shortening policy statements and limiting forward-looking guidance. The potential reduction in meeting frequency has sparked debate among market participants and experts.