Fed plans to eliminate some rate-setting meetings, Chairman Warsh says

The Federal Reserve plans to eliminate some meetings devoted to setting interest rates, Chairman Kevin Warsh said Wednesday.Starting next fall, the central bank will dedicate one of its eight annual meetings to considering broad-based questions about the economy, rather than to voting on interest rates. That number will increase to two in 2028. Warsh made the announcement following the release of the central bank’s latest polivy announcement, which left rates unchanged.He said the rationale for doing so was to devote more time to thinking about longer-term issues by shifting attention away from the immediate interest-rate environment. “Getting policy right involves assessing near-term developments at timely, regular, and information-rich intervals,” he said. “But it’s equally important we reserve time and space as an intellectually diverse group for strategic deliberations, for thinking anew about big questions, looking out over longer time horizons.”Reducing the number of rate-setting meetings has long been debated over concerns about short-sightedness — but the switch was never enacted over fears the Fed would be become less nimble in reacting to sudden changes in the economy. The change would make the Fed unique among Western central banks, including the Bank of England and Bank of Japan.