Fed Under Warsh May Cut Number of Meetings, Markets Brace for Volatility

Since taking the helm in May, Kevin Warsh has already pushed through several reforms that depart from longstanding Fed practice. Among the ideas under discussion is trimming the number of regular Federal Open Market Committee meetings, which would reduce how often the central bank communicates policy signals to markets. Analysts warn that fewer meetings mean fewer chances for investors to recalibrate expectations, raising the odds of sharp price swings when decisions do come. Traders and fund managers are already positioning portfolios for elevated volatility in coming months. The shift could rank among the most significant structural changes to Fed operations in decades.