The U.S. Federal Reserve will make fewer decisions on interest rates moving forward.
The American central bank has announced that it will reduce the number of rate decisions it announces starting in 2027.
Specifically, the Fed said that its policy meeting in October 2027 will focus on “the discussion of broad monetary policy strategy issues” and will not include an interest rate decision.
In all, the central bank will make seven interest rate decisions in 2027, down from eight decisions this year.
Additionally, the 2027 calendar shows that the Fed’s final meeting of the year will take place in November rather than December.
The move to reduce the number of votes that the Federal Open Market Committee takes on interest rates is part of a strategy by Fed Chairman Kevin Warsh to communicate less.
Warsh has said that he wants to reduce the central bank’s impact on financial markets and does not favor signaling to investors whether the Fed plans to raise or lower interest rates.
Fewer rate decisions also comes as U.S. President Donald Trump continues to call on the central bank to slash interest rates to zero to boost the economy and stock market.
Warsh, a Trump appointee, has been cagey in his comments about the future direction of interest rates during his press conferences with the media.
Nevertheless, the Fed raised interest rates by 25 basis points at its September meeting this year, its first hike since 2023 as inflation in the U.S. remains high.
Financial markets have price in a 100% chance that the Fed will raise interest rates another 25 basis points at its year-end meeting on Dec. 9.
Earlier this week, it was reported that inflation in the U.S. during October reached an annualized rate of 4%, double the Federal Reserve’s 2% target.
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