Fed's Warsh to dedicate some FOMC meetings to strategy

Key facts

• Starting in 2027, one FOMC meeting annually will focus exclusively on monetary policy strategy.
• In 2028, two FOMC meetings will be dedicated to strategy and six to policy setting.
• The strategic meetings will not include votes on the federal funds rate or policy statements.

Federal Reserve Chair Kevin Warsh announced on Wednesday that the central bank will alter its meeting schedule starting in 2027. One of the eight annual Federal Open Market Committee (FOMC) meetings will be dedicated solely to strategic discussions, without considering monetary policy changes or issuing statements. In 2028, this will expand to two strategy-focused meetings. Warsh stated the aim is to allow for deeper deliberation on long-term issues facing the institution. While this may affect the Fed's ability to respond to rapid economic shifts, the central bank retains the ability to adjust policy outside of scheduled meetings. This initiative is part of Warsh's broader efforts to reform monetary policy conduct and communication.