Warsh Seeks to Cut Back on Fed Policy Meetings Frequency

US Federal Reserve Chairman Kevin Warsh has proposed reducing the frequency of the Fed's regular policy meetings. This change would break nearly half a century of practice, established under former Chair Paul Volcker in 1981. The current schedule includes eight scheduled meetings per year.

The idea was raised during this week's interest-rate-setting meeting. If adopted, it would significantly cut back on the information available to Wall Street and the public about the direction of interest rate policy and the Fed's interpretation of inflation, employment, and economic conditions.

Warsh has promised 'regime change' since taking over as Chairman two months ago. He came into office with a focus on operational shifts. In emergency situations like the COVID-19 pandemic or the 2007-2009 financial crisis, Fed leaders have convened unscheduled meetings to address these issues.