Fed Chair Warsh Unveils New FOMC Meeting Format

On October 28, Federal Reserve Chairman Kevin Warsh said the central bank will set aside one of its eight regular policy meetings in 2027 and two meetings in 2028 for strategic deliberations only. Those sessions will not include a vote on the federal funds rate nor a policy statement. The remaining meetings will continue as usual policy-setting sessions.

Reuters

He noted that the Fed can still act outside scheduled meetings, as it did in early 2020 during the COVID-19 pandemic. The change could reduce the ability to respond quickly to fast-moving economic shifts, though the exact impact on other review processes was left unclear.

Reuters

Omair Sharif, president of forecasting firm Inflation Insights, told clients that the October 2027 meeting is likely to be the first without rate deliberations. He explained that this would create a 12-week interval between any policy changes and provide two sets of inflation reports under the 2027 data-release schedule, potentially affecting how the Committee assesses price trends.

Reuters

• “We believe eight meetings per year is the right number for the (Federal Open Market Committee), but in 2027, one meeting will focus exclusively on broad monetary policy strategy, with neither a vote on the federal funds rate nor a policy statement anticipated,” — Kevin Warsh, federal reserve chairman

Reuters

• “Getting policy right involves assessing near-term developments at timely, regular and information-rich intervals,” — Kevin Warsh, federal reserve chairman

Reuters

• “That would mean a 12-week gap between any policy changes, but it would also mean they would have two sets of inflation reports, among other data, given the 2027 release schedule as opposed to just one,” — Omair Sharif, president of forecasting firm Inflation Insights

Reuters