Fed Chair Kevin Warsh is reportedly thinking of cutting down the number of regular meetings where the central bank sets interest rates – which would be one of the biggest changes to the body’s operations in decades.
He aired the idea of reducing the annual number of meetings from the status quo of eight to an unspecified figure while the Fed was gathered earlier this week, according to the New York Times.
Warsh seemed poised to make a decision on changing the schedule before the Fed’s next meeting in September, the paper reported, citing four people with knowledge of the talks.
Since he first emerged as a candidate to helm the central bank, Warsh has promised to cut down on the kind of loquacious monetary pronouncements his predecessors were known for – and which regularly moved markets.
Cutting the frequency of Fed meetings could mark a major shift in the body’s direction.
It held interest rates steady in Warsh’s second meeting as chairman on Wednesday, though the committee’s vote revealed growing dissent as three policymakers wanted to hike rates, instead.
After the meeting, Warsh repeatedly emphasized the Fed’s vow to get prices lower, even saying “we will not hesitate to act.”