Warsh Floats Fewer Rate-Setting Meetings for the Fed

Federal Reserve Chair Kevin Warsh is considering reducing the number of meetings where interest rates are set, according to reports. This would be a significant change from the current eight-meeting schedule, which has been in place since 1981.

The proposal was raised by Warsh during last week's Federal Open Market Committee meeting, although it was not a formal proposal. The move follows Warsh's broader push to reshape how the central bank operates.

Fewer rate-setting meetings could lead markets to focus more on economic data between meetings and reduce their reliance on Fed guidance. However, some experts warn that this could also make each meeting a bigger event, leading to increased scrutiny of other FOMC members' speeches and events.