Warsh Announces Reduced Frequency of Interest Rate Meetings! In 2028, the Federal Reserve will still hold eight meetings a year, but only six will actually vote on interest rates. The other two will be dedicated to discussing long-term monetary policy strategies, without voting or issuing interest rate decisions. This will begin in the fall of 2027, with one such meeting scheduled for the first year. Last night, the Fed kept interest rates unchanged, with the target range remaining at 3.75%–4%, in line with market expectations. 1. Inflation remains the number one enemy. Warsh stated that inflation has been above the 2% target for nearly six consecutive years, and controlling inflation is the Fed's responsibility. If subsequent data does not support a decline in inflation, further rate hikes remain an option. 2. No answer yet on whether to raise rates in December. Warsh refused to commit to the next interest rate path, emphasizing the need for more economic data. This pause does not mean the Fed has ended its rate hike cycle. 3. The economy is strong, but most officials believe it is not overheated. Warsh noted strong economic growth and business investment, as well as a resilient job market. The Fed needs to continue suppressing inflation while avoiding excessive tightening that could drag down the economy. The decision passed 10-2, with Cook and Hammack advocating for a rate hike. Although the Fed has paused its operations, there is no complete consensus within the organization regarding the risks to inflation.