Warsh hints fewer Fed meetings

Kevin Warsh has opened a new front in the Federal Reserve’s communications debate by signaling he is willing to consider holding fewer policy meetings each year. The idea, reported by CNBC on August 5, would reduce the current schedule of eight regularly planned Federal Open Market Committee meetings and mark a break with a structure the Fed has used for decades. Markets have focused on the proposal because it would give investors fewer routine dates for rate decisions, statements and press conferences. Banks and bond traders were already reassessing the path of rates after Warsh’s July 29 press conference and the Treasury market reaction that followed. ### How many meetings does the Fed hold now, and what exactly could change? The Federal Reserve says the FOMC holds eight regularly scheduled meetings a year, with other meetings called as needed. The 2026 calendar lists the remaining scheduled meetings for September 15-16, October 27-28 and December 8-9, and notes that minutes from regular meetings are released three weeks after the policy decision. (cnbc.com) CNBC reported that Warsh has floated holding fewer than eight meetings, though the discussion was described by one Fed source as mostly hypothetical. The same report said the proposal would fit with broader steps Warsh has taken since becoming chair in May to reduce how much the central bank signals markets in advance. (federalreserve.gov) ### Why are investors reacting so strongly to a scheduling question? July 29 is the date investors keep pointing to. After the Fed left rates unchanged at Warsh’s second meeting as chair, CNBC reported that long-term Treasury yields rose while traders reduced the odds of a near-term hike, a combination that raised questions about how markets were reading the Fed’s inflation stance. The 30-year Treasury yield hit its highest level since 2007 after that press conference, CNBC said. (cnbc.com) American Banker reported on August 5 that bond yields rose again after Warsh’s second press conference last week and that bankers may have to accept higher rates as the price of what it called a more parsimonious Fed. That reaction matters because fewer scheduled meetings would mean fewer routine opportunities for the chair and committee to explain how they are interpreting inflation, growth and labor-market data. (cnbc.com) ### What has Warsh said about Fed communication more broadly? July 14 offers one clear marker of Warsh’s approach. In testimony to Congress, he said some forms of Fed communication are discretionary, while accountability to Congress is not, and he said the Fed’s “number one objective” is to get monetary policy right. The testimony did not lay out a meeting-cut plan, but it showed his emphasis on policy decisions over expansive signaling. (americanbanker.com) CNBC reported that Warsh has already curtailed forward guidance, shortened post-meeting statements and given limited answers in his first two press conferences. Those changes have fed investor concern that the Fed is becoming less predictable at a time when inflation credibility is under close watch. (federalreserve.gov) ### Are other Fed officials backing the idea? Neel Kashkari, president of the Minneapolis Fed, told CNBC on August 5 that he was comfortable with reexamining the schedule. “I don't think there's any magic number about eight or 10 or six,” Kashkari said, while adding that emergency meetings remain available but would send a strong signal to markets. CNBC also reported that Anna Paulson of the Philadelphia Fed had expressed willingness to discuss the issue. (cnbc.com) That matters because any change would not just alter calendar logistics. It would change how often committee members gather for formal decisions and how often markets get the policy statement, press conference and, at some meetings, updated economic projections. The Fed’s current 2026 calendar shows projections are tied to the March, June, September and December meetings. (cnbc.com) ### What should investors watch next? September 15-16 is the next scheduled FOMC meeting on the Fed’s calendar. Before then, the Fed is due to release minutes from the July 28-29 meeting three weeks after the decision, which would provide the next official account of how policymakers discussed rates and communications. Any further public comments from Warsh, Kashkari or other regional Fed presidents will be scrutinized for whether the idea of fewer meetings remains a trial balloon or moves toward a formal proposal. (federalreserve.gov)