Warsh Weighs Cutting Fed Meetings, Biggest Policy Shake-Up Since 80s

Federal Reserve Chair Kevin Warsh is considering a significant change to the central bank's monetary policymaking process. He may reduce the number of policy meetings from eight to six per year, with two additional meetings focused on broader economic issues.

This would be the biggest shake-up in decades and could have important implications for how markets price policy adjustments.

With fewer scheduled meetings, the Fed would have fewer routine opportunities to adjust interest rates as economic conditions evolve. This could lead to a greater reliance on emergency meetings if inflation or labor market data shift sharply between scheduled sessions.

The proposal is consistent with Warsh's approach to the chairmanship, which has been marked by a relatively restrained communications style and limited public sharing of his own policy views.