Fewer Fed meetings under Kevin Warsh? What a reduced FOMC calendar could mean for investors

According to The New York Times, Federal Reserve (Fed) Chair Kevin Warsh told colleagues in late July that he was considering reducing the number of scheduled Federal Open Market Committee (FOMC) meetings. This would not only break decades of precedent on the frequency of meetings where the Fed sets interest rates but also fundamentally change how the central bank operates.

Warsh raised the idea to colleagues at the July FOMC meeting, after the Fed once again left interest rates unchanged in a target range of 3.50% to 3.75%. He reportedly presented the notion of fewer meetings as a discussion topic rather than a formal policy proposal, and it remains unclear whether the schedule will actually change or by how much.

The FOMC, comprising 12 voting members from the Federal Reserve system, holds eight regularly scheduled meetings per year. At those meetings, the FOMC reviews financial conditions and decides on the direction of the federal funds rate – often referred to simply as “interest rates” – which influences borrowing costs across the economy.

For markets, the FOMC calendar acts like a series of “checkpoints” where investors expect fresh insight into the Fed’s thinking. If there are fewer checkpoints, markets may place even more weight on interim data releases and Fed commentary. Below, we will examine what we know so far, consider what a reduced schedule could mean for Fed communication and discuss the practical signals investors can watch for without overreacting to headlines.

What we know – and what we don’t – about the possibility of fewer Fed meetings

Until the Banking Act of 1933, each regional Fed bank oversaw its own independent monetary policy. In a follow-up bill – the Banking Act of 1935 – Congress created the modern structure of the FOMC as a centralized body to coordinate monetary policy across the Federal Reserve system. That law requires the FOMC to meet at least four times each year.

In practice, the Fed’s meeting cadence has shifted over time. Until the 1980s, policymakers met more frequently – almost every month, with additional sessions as needed. For example, in 1956, the FOMC held a record 19 meetings. During the inflation crisis in 1978, the Fed had 12 meetings plus several emergency calls. It wasn’t until 1981, under then-Fed Chair Paul Volcker, that the central bank adopted its current schedule of eight meetings a year, which works out to one roughly every six weeks.

Even with a set calendar, the Fed can still move quickly when financial conditions demand it. The chair or any three FOMC members can call for an unscheduled meeting. The most prominent recent example was in March 2020 at the beginning of the COVID-19 pandemic, when the Fed held two emergency meetings, cut rates and launched emergency liquidity and credit facilities aimed at supporting the economy.

“In my view, the odds for the Fed changing its meeting cadence are low, as the eight meetings per year are tightly integrated with the rhythm of incoming macro data, giving policymakers repeated, well-timed checkpoints to update the outlook without overreacting to a single release. That said, we think the FOMC’s communication framework can evolve as reflected in the statement language, and they may even choose to retire the SEP dot plot,” J.P. Morgan Wealth Management’s Global Investment Strategist Mohammad Maaz Rehan said.

The Fed in 2026 has so far remained on hold under new Fed Chair Kevin Warsh. In his first two FOMC meetings in June and July, Warsh reiterated that “prices are too high” due to inflation and that the central bank “will deliver price stability.” In keeping with his criticism of traditional forward guidance, the Fed chair has so far declined to participate in the Summary of Economic Projections (SEP) dot plot, a quarterly report that compiles anonymous interest rate forecasts from individual FOMC participants.

Against that backdrop, Warsh’s suggestion about fewer meetings would represent a meaningful change in how the Fed delivers information to markets. Despite the discussion about a potentially reduced frequency, the Fed has notably already announced FOMC meeting dates for the rest of this year and for 2027, though published calendars can be revised.

For investors, the FOMC calendar isn’t just a schedule but rather a part of the market’s informational rhythm. While fewer meetings could mean fewer official updates from the central bank and result in less market clarity, that doesn’t necessarily mean fewer rate changes: The Fed can still act when needed.

How fewer meetings could change the Fed’s ‘signals’ (and market reactions)

Per reports, reducing the number of Fed meetings would be in line with Warsh’s tenure as chair so far. Indeed, he has already drastically shortened the policy statements released by the central bank after each meeting. He has also created task forces to examine how the Fed communicates to the public and which data sources it uses. If the central bank does establish a reduced meeting schedule, it may throw off investors and markets because they have gotten used to the Fed operating on a predictable timetable.

In plain terms, forward guidance is the Fed’s attempt to shape expectations about what it might do next. It does this by using statement language, press conferences, economic projections and public comments from officials. The goal isn’t to predict the future perfectly but to reduce uncertainty about how policymakers are interpreting the data.

A smaller meeting calendar wouldn’t automatically change the Fed’s goals, but it might change how markets process information, including the following:

It’s also worth keeping perspective: Markets often reprice on economic data and financial conditions, not just on Fed meeting days. Even with fewer scheduled meetings, investors will still be reading the same inflation prints, labor reports and financial stability signals that shape Fed decisions.

The bottom line: What investors should do

Rather than trading around headlines tied to the Fed calendar, investors would be wise to stay anchored to time horizon, cash needs and diversification.

If you hold bonds or cash for near-term needs, consider whether your liquidity and maturities line up with your spending timeline – so you aren’t forced to sell assets at the wrong time. If you are invested in equities, expect rate-driven volatility to emerge at times, and try to avoid trading on short-term swings. If markets move sharply around data or Fed communication, a disciplined rebalancing process can help manage risk without requiring you to predict policy.

Whether the Fed meets eight times a year or fewer, long-term outcomes for investors are still shaped more by inflation, growth, earnings and time in the market than by the calendar itself.

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