Federal Reserve to Cut Frequency of Rate-Setting Meetings

The Federal Reserve announced a phased reduction in the number of Federal Open Market Committee (FOMC) meetings that will include a vote on the benchmark interest rate. Starting next fall, one of the eight annual meetings will be dedicated solely to broad-based monetary-policy strategy, eliminating a rate-setting vote. The plan calls for a second strategic-only meeting in 2028, leaving six meetings that will still decide the federal funds rate.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028 NBC News

Since 1981, the FOMC has held eight scheduled meetings each year to set the benchmark rate. Chairman Kevin Warsh, who assumed the Fed’s top post in May after nomination by President Donald Trump, has advocated for a longer interval between rate-setting sessions to allow more data collection and deeper strategic deliberation. The proposal follows internal discussions that began in July, when Warsh argued that a longer lag could improve policy assessment.

NBC NewsU.S. Fed to cut rate-setting meetings to six a year starting in 2028

• Current schedule: eight rate-setting meetings per year.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

• 2027: one meeting will be strategic-only, reducing rate-setting meetings to seven.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

• 2028: two meetings will be strategic-only, reducing rate-setting meetings to six.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

• Total meetings each year will remain at eight.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

• The Fed kept its benchmark rate steady at a range of 3.75 %–4.00 % at the latest meeting.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

• Two of the twelve FOMC members dissented, voting for a 0.25-percentage-point increase.

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

He emphasized that while the Fed will continue to assess near-term developments at regular intervals, separating strategic discussions from immediate rate decisions is intended to enhance long-term policy thinking. The announcement followed the FOMC’s most recent policy statement, which left rates unchanged.

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• “In 2027, we will devote one meeting exclusively to discussing broad monetary policy strategy.” — FOMC

U.S. Fed to cut rate-setting meetings to six a year starting in 2028

• “In 2028, we expect to devote two meetings to strategic discussions and make monetary policy decisions at the remaining six meetings.” — Chair Warsh, chairman

U.S. Fed to cut rate-setting meetings to six a year starting in 2028