Warsh Weighs Fewer Rate-Setting Meetings for the Fed

Federal Reserve Chair Kevin Warsh has proposed reducing the number of meetings where the central bank sets interest rates, a move that could alter how it operates for decades. The current eight-meeting schedule has been in place since 1981.

The Fed is required to meet at least four times a year, but Warsh believes having more than four meetings is necessary. He raised the idea of reducing rate-setting meetings during last week's Federal Open Market Committee meeting, asking if there would be benefits to meeting less frequently, according to the New York Times.

This proposal follows Warsh's broader push to reshape how the central bank conducts itself. Some economists argue that fewer meetings would encourage policymakers to focus more on economic data between meetings and reduce the perception that every gathering requires a policy signal.