Federal Reserve Chairman Kevin Warsh raised the idea of cutting the number of the Fed's regularly scheduled policy meetings, the New York Times reported on Friday. The change, if adopted, would break with a cadence in place since 1981 and stands as the most consequential operational shift so far under Warsh, who took the role about two months ago.
Federal Reserve Chairman Kevin Warsh raised the idea of reducing the number of the Fed's regularly scheduled meetings where it sets interest rate policy, at this week's rate-setting gathering, the New York Times reported on Friday.
The move would break with nearly half a century of practice. It would also mark the most consequential operational shift so far under the new Fed leader — according to Reuters, Warsh promised "regime change" when he came aboard about two months ago.
Fewer scheduled meetings would significantly cut back the information Wall Street and the wider public receive about the direction of rate policy, as well as the Fed's read on inflation and the job market — the focuses of its congressional dual mandate — and the economy more broadly.
The Fed has held eight scheduled meetings a year since 1981, a cadence established under former Chair Paul Volcker. In emergencies, such as the early days of the COVID-19 pandemic or the 2007-2009 global financial crisis, Fed leaders have convened unscheduled meetings, by phone or in person, to address those events.
Source: Investing.com
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