Warsh raised changing frequency of Fed policy meetings, NYT reports

WASHINGTON, July 31 (Reuters) - U.S. Federal Reserve Chairman Kevin Warsh at this week's interest-rate-setting meeting raised the idea of reducing the number of the Fed's regularly scheduled meetings where it sets monetary policy, the New York Times reported on Friday.

The move, if adopted, would break with nearly half a century of practice and would serve as the most consequential operational shift so far under the new Fed leader, who came aboard about two months ago promising "regime change."

It would significantly cut back on the information Wall Street and the wider public would receive about the direction of interest rate policy and the Fed's interpretation of the state of inflation and the job market - the focuses of its congressional dual mandate - and the economy more broadly.

The Fed has held eight scheduled meetings a year since 1981, a cadence established under former Chair Paul Volcker. In emergencies - such as during the early days of the COVID-19 pandemic or during the 2007-2009 global financial crisis - Fed leaders have convened unscheduled meetings - either over the phone or in person - to address those exigent circumstances.