Kevin M. Walsh is considering reducing the number of regular meetings where the Federal Reserve sets interest rates. This move is likely to cause a major shock, or it will be the central bank's most significant reform of its operating model in many years. The Federal Reserve's 12-member Policy Committee meets eight times a year to vote to raise, lower, or maintain borrowing costs. Four people familiar with the matter who were allowed to be interviewed anonymously revealed that at this week's Federal Reserve meeting, Walsh proposed the idea of adjusting the frequency of these meetings. This was the second meeting that Walsh presided over in his capacity as chairman. He sent a signal that the Federal Reserve is expected to finalize the new meeting schedule before the next meeting in mid-September, and that related adjustments may be delayed. The Federal Reserve declined to comment. Lowering the frequency of meetings and consequently reducing the number of interest rate votes will be Walsh's most far-reaching move since taking office. The plan will break decades-old practices, reshape the way the Fed regulates the economy, and may also reduce its ability to respond quickly to changes in inflation and the job market. As the number of meetings decreases, Wall Street and the public will also have less information on the Federal Reserve's interest rate ideas, reversing the decades-long trend of information transparency.

Kevin M. Walsh is considering reducing the number of regular meetings where the Federal Reserve sets interest rates. This move is likely to cause a major shock, or it will be the central bank's most significant reform of its operating model in many years. The Federal Reserve's 12-member Policy Committee meets eight times a year to vote to raise, lower, or maintain borrowing costs. Four people familiar with the matter who were allowed to be interviewed anonymously revealed that at this week's Federal Reserve meeting, Walsh proposed the idea of adjusting the frequency of these meetings. This was the second meeting that Walsh presided over in his capacity as chairman. He sent a signal that the Federal Reserve is expected to finalize the new meeting schedule before the next meeting in mid-September, and that related adjustments may be delayed. The Federal Reserve declined to comment. Lowering the frequency of meetings and consequently reducing the number of interest rate votes will be Walsh's most far-reaching move since taking office. The plan will break decades-old practices, reshape the way the Fed regulates the economy, and may also reduce its ability to respond quickly to changes in inflation and the job market. As the number of meetings decreases, Wall Street and the public will also have less information on the Federal Reserve's interest rate ideas, reversing the decades-long trend of information transparency.