Federal Reserve Chair Kevin Warsh proposed reducing regular FOMC meetings from 8 to 6 per year. The aim is to secure more time for consideration by using accumulated information, given the short intervals between meetings.
Federal Reserve Chair Kevin Warsh proposed reducing the number of regular FOMC meetings from the current 8 to 6 per year in the published minutes. The stated aim is to reduce the frequency of meetings and secure more time to consider monetary policy.
According to the minutes, several participants noted that there had been little change in assessments of the US economy because the interval between the June and July meetings was short. Warsh explained that holding meetings roughly every 2 months would allow more time to consider issues by using information accumulated between meetings.
Regular meetings are currently held 8 times a year. After the meetings in March, June, September and December, projections for the US economy and interest rates are presented, and the Chair holds a press conference. The Bank of Japan's Monetary Policy Meetings are also held 8 times a year, around the dates of FOMC meetings.
However, reducing the frequency of regular meetings could make it difficult to respond quickly to price and employment conditions. The way the Federal Reserve communicates information is also an issue on the agenda of a working group established by Warsh.