Fed Chair Kevin Warsh Considers Fewer FOMC Meetings Amid Rate Hold

Federal Reserve Chair Kevin Warsh has floated the idea of cutting the number of Federal Open Market Committee (FOMC) policy meetings, which are currently held eight times a year. A reduction would represent a major change in the Fed’s operating framework and could affect how quickly monetary policy is adjusted. The Fed’s spokesperson declined to comment on the proposal.

The market reacted sharply after the FOMC voted 9‑3 to keep rates unchanged on July 29. The U.S. dollar fell more than 0.7% and the 30‑year Treasury yield rose above 5.2%, the highest level in 19 years. Analysts noted that Warsh’s lack of a clear signal on future rate hikes, despite inflation running above the 2% target for over five years, has heightened uncertainty and prompted a sell‑off in Treasury bonds.