Warsh Suggests Shrinking Fed Meeting Cadence

US Federal Reserve Chairman Kevin Warsh has proposed reducing the frequency of monetary policy meetings, according to the New York Times. This move would break nearly half a century of practice and represent a significant shift in how the Fed operates under its new leader.

The current schedule, established in 1981 under former Chair Paul Volcker, holds eight scheduled meetings per year. However, during emergencies such as the COVID-19 pandemic or the 2007-2009 global financial crisis, unscheduled meetings have been convened to address urgent circumstances.

Warsh's proposal would likely reduce the information available to Wall Street and the public about interest rate policy, inflation, and job market performance. The Fed's dual mandate is focused on these areas, and a reduced meeting schedule could impact its ability to respond to changing economic conditions.