Warsh Considers Cutting FOMC Meetings to 4 Per Year

Federal Reserve Chair Kevin Warsh is considering reducing the number of Federal Open Market Committee meetings from eight per year, according to The New York Times. This would represent a significant change to the central bank's operations, last seen in 1981 when the FOMC adopted its current schedule under Chair Paul Volcker.

The Fed currently holds eight FOMC meetings a year, roughly every six weeks, each lasting two days. A statement on the rate decision is released immediately after each meeting, and some sessions are followed by a press conference by the chair. Detailed minutes are made public three weeks later.

Critics warn that fewer meetings would mean fewer opportunities to adjust monetary policy, potentially slowing the Fed's response to changes in inflation and employment conditions. The move could also reverse decades of progress toward greater transparency, as fewer post-meeting statements and press conferences would reduce the policy signals available to markets and the public.