Federal Reserve Chair Warsh Considers Reducing Rate Meeting Frequency

Federal Reserve Chair Kevin Warsh is considering a reduction in the number of regular annual meetings where the central bank sets interest rates. The Federal Reserve currently meets eight times per year, but Warsh proposed a lower, unspecified figure during a gathering this week to reduce the frequency of market-moving monetary pronouncements.

This proposal represents one of the most significant operational shifts for the central bank in decades. A final decision regarding the new meeting schedule is expected before the next Federal Reserve meeting in September.

The development follows a Wednesday meeting in which the Federal Reserve held interest rates steady. That session was marked by growing dissent, as three policymakers favored a rate hike instead of maintaining current levels.