Federal Reserve Chair Kevin Warsh is reportedly considering a reduction in the number of regularly scheduled meetings at which the central bank sets interest rates, a potential shift that would represent the most significant change in the Fed’s operations in decades. Currently, the Federal Open Market Committee (FOMC), the Fed’s 12-member policymaking body, meets eight times annually to vote on adjustments to borrowing costs.

Warsh introduced the idea during the Fed’s recent gathering, and according to sources familiar with internal discussions, he may decide on a revised meeting schedule ahead of the next session planned for mid-September, although any changes would likely take effect later. The Fed declined to comment on the reports.

This move would mark a notable departure from the established norm set in 1981 under former Chair Paul A. Volcker, when the eight-meeting-per-year format was adopted. Prior to that, the committee convened much more frequently—in some years nearly monthly—and even more often during periods of economic stress, such as the high inflation era of the late 1970s or the 1950s. The current legal framework, established by the Banking Act of 1935, mandates that the FOMC meet at least four times annually, providing some flexibility on frequency.

Proponents of reducing meetings suggest it could streamline Fed operations and reduce the amount of market-moving communications that have, at times, heightened volatility. Warsh has already embarked on efforts to simplify the Fed’s post-meeting statements, scaling back details on economic outlooks and interest rate paths, alongside discussions about potentially limiting post-meeting news conferences introduced in 2019. He has emphasized a focus on lowering inflation and expressed readiness to act decisively if needed.

However, critics caution that fewer meetings might impair the Fed’s responsiveness to changes in economic data, including inflation and employment trends, and reduce transparency for markets and the public. Regular meetings have long provided a predictable cadence for policy announcements and detailed economic analysis, with associated briefing materials and minutes released on a set schedule. The potential change runs counter to decades of increasing openness and communication with investors and analysts.

Warsh, who became Fed Chair in May, has framed his tenure as an opportunity for reform, seeking “regime change” within the institution by launching multiple task forces addressing communication, data prioritization, and other operational aspects. The discussion about meeting frequency fits within this broader context.

While the Fed has fixed meeting dates announced through 2027, these are subject to change, with provisions allowing the Chair or committee members to call additional sessions if urgent economic developments arise. Historically, unscheduled emergency meetings have been rare and primarily convened during crises, such as the COVID-19 pandemic.

As the Fed prepares for its next policy meeting, attention will remain on whether Warsh finalizes a new meeting schedule and how such a change might influence the central bank’s ability to manage monetary policy amid evolving economic conditions.