Source: Fortune
Summary
Federal Reserve Chairman Kevin Warsh is considering reducing the frequency of the central bank’s scheduled policy meetings. Warsh raised the proposal at this week’s Federal Open Market Committee gathering. The Fed currently meets eight times a year for a two-day gathering. A reduction in meetings would mark a significant shift for the US central bank, coming at a moment when investors have criticized Warsh’s attempt to limit guidance to markets on the direction of interest rates.
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The strategy enters a familiar phase.
Warsh’s proposal to reduce the frequency of Fed meetings comes as investors criticize his approach to inflation and interest rates. The Fed has faced mounting pressure to do more to curb inflation. Warsh has signaled other changes, including potentially reducing the number of press conferences he holds after policy decisions. The Fed’s rate-setting committee includes 12 members, with Warsh at the helm since May.
Warsh’s moves are a response to criticism, not a calm assessment of the situation.
Author: Evan Null
