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8h ago

Fed to Convert Some Rate-Setting Meetings Into Strategy Sessions

Chair Kevin Warsh said the change is designed to create space for longer-term policy thinking and will not include votes on the federal funds rate.

WASHINGTON, DC - SEPTEMBER 16: Federal Reserve Chair Kevin Warsh speaks during a news conference following Federal Open Market Committee meetings at Federal Reserve Headquarters on September 16, 2026 in Washington, DC. The Federal Reserve raised interest rates by a quarter of a percentage point in the first increase since 2023. (Photo by Andrew Harnik/Getty Images)
WASHINGTON, DC - SEPTEMBER 16: Federal Reserve Chair Kevin Warsh speaks during a news conference following Federal Open Market Committee meetings at Federal Reserve Headquarters on September 16, 2026 in Washington, DC. The Federal Reserve raised interest rates by a quarter of a percentage point in the first increase since 2023. (Photo by Andrew Harnik/Getty Images)
US Federal Reserve Chair Kevin Warsh speaks during a press conference following the Federal Open Market Committee's interest-rate decision in Washington, DC, on October 28, 2026. The US Federal Reserve on October 28 held interest rates steady, in line with market expectations, days ahead of crucial midterm elections where surging inflation has been a key issue. The 12-member Federal Open Market Committee voted 10-2 to hold rates at a target range between 3.75 percent and 4.00 percent, citing the need for more data in the fight against price increases. Policymakers raised rates for the first time in three years at their previous meeting in September. (Photo by SAUL LOEB / AFP via Getty Images)

Overview

  • The Fed announced it will keep its eight annual FOMC meetings but designate one meeting in 2027 and two meetings in 2028 as strategy sessions where no federal funds rate vote or policy statement is expected.
  • Chair Warsh framed the shift as a way to reserve time for broad, long-horizon deliberation and to encourage intellectual diversity among committee members.
  • The change was announced alongside a policy release that left interest rates unchanged and followed a September rate increase that Warsh said has tightened financial and credit conditions for some households and businesses.
  • Supporters say dedicated strategy time could reduce short-term pressure on decisions and improve planning, while critics warn the move could slow the Fed’s ability to respond quickly to sudden economic shocks.
  • The decision revives a long-running debate about meeting cadence, would make the Fed’s schedule different from other major Western central banks, and comes as inflation has remained above the committee’s objective for several years.