The Federal Reserve will set interest rates less often. Chair Kevin Warsh announced after Wednesday’s decision that the FOMC will keep eight meetings a year, but one meeting in 2027 will be devoted exclusively to broad monetary policy strategy, with no vote on the federal funds rate and no policy statement expected. In 2028 he expects two strategy meetings, leaving six rate-setting decisions.
Warsh framed the calendar itself as a policy instrument. He said the setting of the meeting schedule and agenda is more than an administrative detail, calling it an institutional choice that affects the nature and quality of deliberations and ultimately the wisdom of decisions. The strategy meetings are meant to give the committee dedicated time for longer horizon questions that the six week decision cycle crowds out.
The change extends a pattern. Since taking the chair in May, Warsh has ended forward guidance, withheld personal forecasts, shortened policy statements and cut press conference durations. Markets now get fewer signals between decisions as well as, from next year, fewer decisions themselves.
The practical consequence is concentration. With seven scheduled chances to move in 2027 and six in 2028, each meeting carries more repricing risk, and the committee’s flexibility to respond on schedule to a fast moving shock narrows. The Fed retains the ability to act between meetings, as it last did in early 2020, but intermeeting moves are emergency instruments, not routine ones.