Warsh Plans to Eliminate Some Fed Rate-Setting Meetings
Fed Chairman Kevin Warsh said Wednesday the central bank will hold one strategy-only meeting in 2027 and two in 2028. Those meetings will not include rate decisions.
8 scheduled FOMC meetings a year has been the norm since 1981.
Strategy meetings will produce no rate announcement and no post-meeting statement.
The Fed left rates unchanged after a September hike of 25 basis points.
Many Fed watchers had expected a cut to six meetings a year.
Why it matters: Warsh says the change frees time for longer-term thinking. Opponents have long warned that fewer meetings could make the Fed slower to respond to sudden shocks.
The shift would set the Fed apart from the Bank of England and Bank of Japan.
It follows other Warsh changes, including a shorter post-meeting statement and an end to forward guidance.
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Political Bias
Coverage by lean% of 5 sources
5 sources · 7 articles · 60% Center coverage
Where they split: Coverage differs on emphasis: NBC News frames the change as eliminating rate-setting meetings and notes the risks, while Breitbart News frames it as adding a new strategy meeting.
Center coverage, 3 sources: The center treats the change as one item in a market story centered on the rate pause and inflation.
