Fewer Fed rate votes, more debate: FOMC calendar reset
Dubai: The US Federal Reserve will cut the number of meetings at which it sets interest rates in 2027 and 2028. Chairman Kevin Warsh announced the change during his October rate meeting discussion and said that the move was intended to create room for longer-term strategy discussions. The Federal Open Market Committee (FOMC) will keep its eight meetings that take place bi-monthly all year round.…
In 2027 and 2028, the US Federal Reserve plans to reduce the number of meetings at which it sets interest rates. Chairman Kevin Warsh announced the change during a recent discussion, aiming to create space for more extensive strategy discussions. The Federal Open Market Committee (FOMC) will still hold eight meetings throughout the year, but the rate-setting sessions will decrease from seven in 2027 to six in 2028.
The remaining meetings will focus on monetary policy strategy, with no voting on the federal funds rate. Warsh clarified that the new format is not final and there may be further announcements regarding the information released after strategy sessions. He emphasized that the calendar is an institutional choice that impacts the quality of the Fed's deliberations and decisions.
The UAE Central Bank (CBUAE) closely monitors Fed policy as the dirham is pegged to the dollar. With fewer rate-setting meetings, CBUAE will have less frequency in following Fed decisions. However, strategy-only sessions are not anticipated to trigger any local rate changes.
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