FOMC has held 8 rate decisions annually

Next year's rate-setting meetings cut to 7

One session reserved for monetary policy strategy

Rate decisions to shrink further to 6 in 2028

Federal Reserve Chair Kevin Warsh speaks at a press conference following an FOMC meeting Wednesday (local time), announcing plans to reduce the number of rate-setting meetings to seven next year. [AFP]
Federal Reserve Chair Kevin Warsh speaks at a press conference following an FOMC meeting Wednesday (local time), announcing plans to reduce the number of rate-setting meetings to seven next year. [AFP]

Federal Reserve Chair Kevin Warsh announced Wednesday (local time) that the Fed will gradually reduce the number of Federal Open Market Committee meetings at which it sets the benchmark interest rate, beginning next year.

Speaking at a press conference following the FOMC meeting that day, Warsh said the Fed considers eight FOMC meetings per year an appropriate number, but that in 2027 one of those sessions will be devoted solely to broad monetary policy strategy discussions, with no vote on the federal funds rate and no policy statement issued.

"The remaining meetings will be standard FOMC policy-decision meetings," Warsh added, "and in 2028 there will be two strategy-discussion meetings and six policy-decision meetings."

Under the plan, the FOMC will still convene eight times next year, but only seven of those sessions will result in a benchmark interest rate decision. In 2028, that number falls by one more.

Meanwhile, the Fed held its benchmark interest rate steady at 3.75 to 4.00 percent at Wednesday's meeting. Warsh also said "inflation is too high," citing recent energy prices.

"Financial conditions have tightened for some businesses and households, as expected," Warsh said. "While overall financial conditions are tighter than before, it would be difficult to call them restrictive."


kate01@heraldcorp.com