Fed to Cut Rate-Decision Meetings to Seven a Year From 2027, Warsh Says

Federal Reserve Chair Kevin Warsh said Wednesday the central bank will gradually reduce the number of rate-setting meetings, cutting benchmark rate votes to seven per year starting in 2027 and potentially to six in 2028. The FOMC will still convene eight times annually, but one or two of those sessions will become strategic discussions of medium- and long-term monetary policy, with no rate vote and no policy statement issued. Warsh called the shift the most significant restructuring of Fed operations since 1981, when the eight-meeting schedule was established. He first floated the idea at the July policy meeting after taking office in May. The announcement came as the Fed voted 10-2 to hold its benchmark rate in a 3.75% to 4.00% range. Inflation Insights' Omair Sharif said the October 2027 meeting is likely to be the first strategy session without a rate decision, creating a 12-week gap between moves. WisdomTree's Kevin Flanagan questioned the plan, noting longer-term Treasury yields rose after the news even as the 2-year held near 4.76%.