Federal Reserve Chair Powell Considering Reducing Frequency of Fed Policy Meetings

August 1st, it is reported that Federal Reserve Chair Jerome Powell is considering reducing the number of regular interest rate decision meetings held by the Federal Reserve, a move that could trigger a major shake-up and mark the most significant change in the Fed's operation in recent years. Currently, the Federal Reserve's Federal Open Market Committee (FOMC), consisting of 12 members, holds eight meetings a year to vote on whether to raise, lower, or maintain the borrowing costs.

According to four sources familiar with the matter, Powell proposed the idea of adjusting the meeting frequency at this week's Fed meeting. The sources revealed that at this week's meeting, Powell discussed the legal basis that mandates the minimum number of meetings the Fed must hold each year and the timeline for such adjustments. It is said that Powell asked officials to provide feedback on their views to him rather than engaging in a full discussion on the meeting schedule at this week's meeting. (The New York Times)