FED: Senate Democrats Query Warsh On Possible Reduction In FOMC Meetings

Writing "we are concerned that a thinner meeting schedule would cripple the Committee's ability to respond to fast-moving economic conditions, and amounts to a unilateral rewriting of how the Federal Reserve communicates with markets and the American public", six Senate Democrats have asked Fed Chair Warsh to answer multiple questions on proposed changes to then meeting schedule within the next week. Below are the questions:

"Given that reporting indicates a revised schedule could be finalized before the Committee's next required meeting in September, please submit written answers to the following questions no later than September 2, 2026:

1. Please confirm whether the FOMC's regularly scheduled meeting dates for 2026 and 2027, as previously published, remain in effect, or whether any of those dates are under consideration for cancellation or postponement.
2. At your Senate confirmation hearing, you testified that four meetings a year was "not enough," and that "having more meetings than that is appropriate." Please reconcile that testimony with your current consideration of a reduced meeting schedule, whether your position on this question has changed since your confirmation and, if so, on what basis.
3. Please describe any analysis that the Federal Reserve has conducted regarding the impact of a reduced meeting schedule on the Committee's capacity to respond to changes in inflation, employment, and financial stability. Please provide copies of any such analysis.
4. Please identify the specific statutory authority under which the Federal Reserve would implement a change of this kind, and clarify whether the Board of Governors, the full FOMC, or some other body has voted on or approved this proposal.
5. Did the Federal Reserve consult with, or notify Congress, market participants, task force members, or other stakeholders prior to public reports of this change? If so, with whom and when?
6. Do you intend to alter the current cadence of post-meeting press conferences, and if so, how?
7. Please state whether this change is intended to be permanent or is being considered on a trial basis, and if the latter, what criteria will be used to evaluate its success or failure."

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• Recall from the July meeting minutes: "The Chairman observed that six scheduled meetings per year, held roughly every two months, would allow more information to accumulate between meetings than under current practice and provide policymakers and the staff more time to consider strategic monetary policy issues. " The NY Times had reported in early August that "Mr. Warsh, who was presiding over his second meeting as chairman, left the impression that a revised schedule could be decided on before the next meeting in mid-September, even if the changes would not be carried out until later."