Warsh's Meeting Plan Could Upend Fed Communication

Fed Chair Kevin Warsh has proposed reducing the number of Federal Open Market Committee (FOMC) meetings, which could change how the central bank communicates with markets. The FOMC currently meets eight times a year to set interest rates and review financial conditions.

The last time the Fed changed its meeting cadence was in 1981 under then-Fed Chair Paul Volcker, when it adopted the current schedule of eight meetings per year. Warsh has reportedly considered reducing the number of meetings as a discussion topic, rather than a formal policy proposal.

A reduced FOMC calendar could lead to more uncertainty between decisions and potentially bigger reactions to meeting weeks. Investors should stay anchored to their time horizon, cash needs, and diversification rather than trading around headlines tied to the Fed calendar.