Federal Reserve Chairman Kevin Warsh reported proposing cutting back on the number of rate policy meetings held by the central bank’s Federal Open Market Committee (FOMC).
According to a Wall Street Journal report sourced from unnamed “people familiar with the matter,” Warsh raised the idea during last week’s FOMC meeting. The 12-person committee hold meetings in Washington eight times to determine interest rate settings. Warsh’s proposal, which was presented on an informal manner, would reduce the number of meetings to six times a year.
The idea for few minutes would reduce the impact that the Fed has on the economy and global markets. However, it is unclear when those would occur – tentative FOMC meeting dates are scheduled through January 2028 and the central bank’s governing law requires at least four FOMC meetings per year.
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