Fed Chair Kevin Warsh Mulls Cutting Frequency of Policy Meetings

Federal Reserve Chairman Kevin Warsh raised the prospect of trimming the number of regular policy meetings during this week’s Federal Open Market Committee session. Currently, the Fed convenes eight times a year for two-day meetings that end with a policy statement, but Warsh’s suggestion would lower that count. A Fed spokesperson offered no comment on the idea.

The proposal comes as investors have rebuked Warsh for providing little forward guidance and as the central bank faces pressure to intensify its fight against inflation. On Wednesday, the FOMC voted 9-3 to leave interest rates steady, a result that was widely anticipated but accompanied by Warsh’s refusal to discuss future rate moves. Warsh, who assumed the chairmanship in May, has also hinted at cutting post-decision press conferences and has launched task forces to review the Fed’s communication, data usage, and balance-sheet policies.