Fed's Warsh to Dedicate One 2027 FOMC Meeting to Strategy, Two in 2028

Federal Reserve Chairman Kevin Warsh said Wednesday the central bank will set aside one of its eight scheduled policy meetings in 2027, and two in 2028, for strategic deliberations, with no vote on the federal funds rate or policy statement anticipated at those sessions. "In 2027, one meeting will focus exclusively on broad monetary policy strategy," Warsh said at a press conference, adding that 2028 will have two strategy meetings and six for setting policy. He said the aim is to reserve time "for thinking anew about big questions" over longer horizons. The change may reduce the Fed's ability to respond to rapid economic shifts, though it can still act between meetings, as it did in early 2020. Omair Sharif of Inflation Insights expects next year's October meeting to be the first without rate deliberations, creating a 12-week gap between policy changes. It is the latest step in Warsh's overhaul of policy conduct and communication.