Fed Chair Warsh Says Inflation Remains Elevated as Rate-Setting Meetings Decrease

Federal Reserve Chair Kevin M. Warsh told reporters that the Fed will keep its eight scheduled meetings for 2027, but only seven will include a vote on interest rates; the eighth will focus solely on broader monetary-policy strategy. He added that in 2028 the central bank plans six rate-setting meetings and two strategy-only sessions.

"Getting policy right involves assessing near-term developments at timely, regular and information-rich intervals," Warsh 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."

The Fed also described inflation as "elevated" in a statement accompanying the decision. Warsh emphasized that politics did not influence the policy outcome when asked about the upcoming midterm elections.

Fed Governor Lisa D. Cook issued her first dissent, supporting a quarter-point rate increase, and was joined by Cleveland Fed President Beth M. Hammack, who has dissented repeatedly this year.

Economists offered mixed reactions. Some warned that fewer voting meetings could limit the Fed’s ability to respond quickly to changes in inflation and labor markets, while others argued that longer intervals between meetings may help policymakers detect meaningful shifts in economic conditions. The Fed retains the ability to convene emergency meetings if needed.

The announcement comes amid broader economic pressures, including rising energy prices and tighter financial conditions that have increased borrowing costs for households and businesses. Wage growth has lagged behind price increases, reducing real earnings for many workers.