Fed Chair Warsh weighs fewer meetings as markets watch for volatility

Federal Reserve Chair Kevin Warsh is considering reducing the number of policy meetings each year, a shift that would continue his effort to limit the central bank’s communication with markets. The current schedule includes eight meetings annually. Some Fed officials, including Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Anna Paulson, have said they are open to discussing the idea. Others, such as former Fed monetary affairs chief Bill English, say there is nothing special about eight meetings but caution against making the schedule too sparse. Market participants and analysts say fewer meetings could make policy harder to read and increase volatility in stocks and bonds. Warsh has already shortened postmeeting statements, scaled back forward guidance and been less direct in public comments, which has left investors with less detail about the Fed’s likely path. So far, markets have largely absorbed the changes without major disruption. The Dow has risen since Warsh took office, while Treasury yields have moved higher only modestly. Still, some analysts warn that less transparency could create more uncertainty, especially if investors must guess more often about future policy decisions.