Warsh Floats Fewer Federal Meetings Amid Market Scrutiny

Federal Reserve Chair Kevin Warsh has proposed reducing the number of meetings where the central bank sets interest rates. This significant change would come after five consecutive years of elevated inflation that have put additional scrutiny on the Fed.

The current eight-meeting schedule has been in place since 1981, and is required by law to meet at least four times a year. Warsh raised this idea during last week's Federal Open Market Committee meeting, asking whether there would be benefits to meeting less frequently.

Some economists argue that fewer meetings would encourage policymakers to focus more on economic data between meetings and reduce the perception that every gathering requires a policy signal.

Warsh has argued that financial markets have become overly reliant on signals from the Fed rather than economic data, which is why he has scaled back the central bank's policy guidance. He has also floated other changes, including potentially reducing the number of press conferences he holds after policy decisions.