Warsh Eyes Slashing Fed Meeting Frequency

Federal Reserve Chair Kevin Warsh is considering reducing the number of regular Federal Open Market Committee meetings that set the benchmark interest rate. Under the current schedule, which was established in 1981 under then-Chair Paul Volcker, the Fed holds eight scheduled meetings a year to set interest rates.

The minimum requirement for FOMC meetings is four annually, as mandated by the Banking Act of 1935. Warsh proposed lengthening the interval between scheduled FOMC meetings at a recent meeting and signaled that the overhaul could be finalized before the next meeting in mid-September.

This move would extend a broader overhaul of monetary policy operations that Warsh has pursued since taking office. Since becoming chair in May, he has shortened post-meeting policy statements and considered simplifying the press conferences that follow, trimming the Fed’s public messaging.