• Fed Chair Kevin Warsh announced a revamp of the FOMC schedule, cutting policy-setting meetings to six annually starting in 2028.
  • The plan retains eight total gatherings per year but dedicates one meeting to strategy and another to non-rate discussions.
  • The change aims to improve deliberation and data freshness, but critics warn it could reduce transparency and market guidance.

A New Cadence for the Fed

The Federal Open Market Committee (FOMC) is set for its most significant operational shakeup in decades. Chair Kevin Warsh said Thursday that the committee will reduce the number of policy-setting meetings to six per year beginning in 2028, while maintaining eight total meetings annually. The shift, which starts “next fall,” will designate one meeting as a strategy session without a rate vote and another as a non-policy meeting, according to Warsh’s remarks at a briefing following the Fed’s latest rate decision.

The announcement comes as the Fed held its benchmark interest rate steady at 3.75%–4.00%, following a quarter-point increase in September. Warsh emphasized that the change is about improving the quality of deliberations, not altering the direction of monetary policy. “Eight meetings is the right number for gathering, but we can be more focused when it comes to policy decisions,” he said. The Fed’s published calendar still lists eight policy meetings for 2027 and was last updated on October 7; officials said the new structure will be reflected in the 2028 schedule.

Background and Rationale

Warsh, who took over the Fed earlier this year, had been considering fewer rate-setting meetings since July, according to people familiar with the matter. The idea gained traction as a way to give policymakers more time to digest economic data between decisions. Deutsche Bank (DB) chief U.S. economist Matt Luzzetti noted that the current calendar sometimes places meetings immediately before key inflation releases—October’s PCE report, for instance, is due October 29, a day after the latest decision. “Adjusting the calendar could give policymakers fresher data,” Luzzetti said.

But the move also carries risks. Former Fed vice chair Alan Blinder criticized the plan, arguing that fewer policy meetings, combined with Warsh’s reluctance to provide forward guidance, could leave markets guessing. “The Fed’s communication has already been a source of volatility; reducing the number of decision points may amplify that,” Blinder said. The central bank has held eight policy meetings per year since 1981, under then-Chair Paul Volcker, making this a departure from nearly 45 years of practice.

Market and Political Implications

The announcement came on the same day the Fed opted to keep rates unchanged, with officials signaling that further tightening remains possible if inflation persists above the 2% target. KPMG’s October analysis expects another rate increase in December, citing minutes from the September meeting showing most participants favored additional tightening by year-end. That forecast, however, is not a commitment.

Investors are still parsing the implications. While the calendar change does not directly affect the level of rates, it could influence how markets interpret future policy moves. “Fewer meetings mean each decision carries more weight, and the bar for action might be higher,” said one fixed-income strategist at a major Wall Street bank, who spoke on condition of anonymity. The Fed’s next scheduled meeting is December 8–9, accompanied by updated economic projections.

Political sensitivities also linger. Warsh’s tenure has faced questions about his independence from President Donald Trump, who appointed him. Announcing a procedural change just before the midterm elections adds a layer of scrutiny, though the Fed chief stressed that the decision was driven by operational considerations, not politics. A Fed spokesperson declined to comment beyond Warsh’s remarks. The Treasury Department did not respond to a request for comment.

What’s Next

Key details remain unresolved: which meetings will exclude rate votes, whether strategy sessions will produce statements or minutes, and how economic projections and press conferences will fit the new structure. The published 2027 calendar still lists eight policy meetings, so the specifics of the transition will be closely watched. For now, the Fed’s stance on interest rates remains the primary focus for borrowers, savers, and investors alike.

Correction: An earlier version of this article misstated the year the new schedule takes effect; it begins in fall 2027, with six policy-setting meetings in 2028.