Warsh Weighs Cutting Fed Meetings Amid Shift Away from Market Guidance

Federal Reserve Chair Kevin Warsh is considering reducing the number of meetings where the central bank sets interest rates, a significant change from its current eight-meeting schedule since 1981.

The proposal was raised during last week's Federal Open Market Committee meeting, with Warsh asking if there would be benefits to meeting less frequently. This follows his broader push to reshape how the Fed conducts itself and reduce market dependence on its guidance.

Critics argue that holding fewer rate-setting meetings could lead to increased volatility as markets become more focused on each gathering. However, some economists believe it could encourage policymakers to focus more on economic data between meetings, reducing the perception that every meeting requires a policy signal.