U.S. Fed to cut rate-setting meetings to six a year starting in 2028

【Financial News, New York — Lee Byung-chul, correspondent】 The U.S. Federal Reserve (Fed) has decided to gradually reduce the number of Federal Open Market Committee (FOMC) meetings at which it sets the benchmark interest rate. The number of rate-setting meetings, currently eight a year, will be cut to seven next year and six in 2028. A revamp of the Fed’s operating practices, which Fed Chair Kevin Warsh has pursued since taking office, appears to be moving into full swing.
At a news conference after the FOMC’s regular meeting on the 28th (local time), Chair Warsh announced a plan to reduce the number of rate-setting meetings.
 He said, “We believe eight meetings a year is an appropriate number for the FOMC,” but added, “In 2027, we will devote one meeting exclusively to discussing broad monetary policy strategy.”
He went on to say, “We do not expect there to be a vote on the federal funds rate or a monetary policy statement at that meeting,” adding, “The remaining meetings will be held as regular monetary policy decision meetings.”
In 2028, rate-setting meetings will be reduced further. Chair Warsh said, “In 2028, we expect to devote two meetings to strategic discussions and make monetary policy decisions at the remaining six meetings.”
As a result, the FOMC’s total number of meetings each year will remain at eight, but the number of meetings at which it actually sets the benchmark interest rate will fall to seven in 2027 and six in 2028.
Since 1981, the Fed has held eight regular meetings a year to set the benchmark interest rate. Chair Warsh has raised the idea of reducing the number of meetings since July, and the Fed is also said to have been considering it internally.
The overhaul is focused on separating rate decisions from discussions of medium- and long-term monetary policy strategy. However, with fewer opportunities for regular rate decisions, changes are also expected in how the Fed conducts policy in response to sharp rises in prices or an economic slowdown.
Meanwhile, the Fed held its benchmark interest rate steady at an annual rate of 3.75%–4.00% that day. However, two of the 12 FOMC members dissented, voting for a 0.25-percentage-point increase and revealing internal divisions over the future path of interest rates.



[email protected] Lee Byung-chul, correspondent Reporter