Fed Weighs Cutting Regular FOMC Meetings to Six From Eight a Year

The Federal Reserve is considering reducing the number of its regularly scheduled Federal Open Market Committee meetings to six a year from eight, Bloomberg reported.

Bloomberg reported on August 2 that Fed Chair Kevin Warsh proposed at last week's FOMC meeting that the central bank review both its monetary policy decision-making process and its meeting schedule.

One option under discussion would reduce to six the number of regular meetings at which officials set the benchmark interest rate and determine monetary policy. The remaining two meetings would be used to discuss economic issues and other current matters. No final decision has been made.

Officials also discussed ways to better align the timing of monetary policy decisions with the release schedule for key economic indicators to improve the efficiency of policy deliberations, the report said.

The Fed has held eight regular FOMC meetings a year since the early 1980s to set interest rates. Any reduction would mark a major change in a monetary policy framework that has been in place for decades.

Since taking office in May, Warsh has been pushing a broader overhaul of the Fed's operations. He is considering reducing the number of press conferences and simplifying FOMC statements. He has also created five task forces to review the Fed's external communications and balance-sheet operations.

The FOMC is scheduled to hold its remaining meetings this year in September, October and December, and the Fed has already released its 2027 meeting calendar. Under its rules, however, the central bank can also convene emergency meetings outside the regular schedule at the request of the chair or committee members if needed. It did so in 2020, when it held emergency meetings during the Covid-19 pandemic to make monetary policy decisions.