Kevin Warsh said the Federal Reserve will hold interest rates steady at a 3.75%–4.00% target range after the Oct. 28 FOMC meeting and outlined changes to how some future meetings will be run.
The FOMC voted to keep the federal funds rate in a 3.75%–4.00% range, and Warsh used the post‑meeting press conference to say the Fed will “reserve” one meeting in 2027 and two in 2028 for broad strategic discussions that will not include a rate vote, Reuters reported.
CNBC reported that two FOMC members dissented from the decision and wanted a quarter-point increase, while the committee said inflation “remains elevated” and it is waiting for more information before acting. Kevin Warsh described the move to separate strategy sessions as part of an overhaul of how the Fed communicates policy.
The new cadence means the Fed will keep eight scheduled meetings per year but designate some solely for strategic deliberations, Warsh told reporters, adding the change will give officials time to “think anew about big questions,” Reuters wrote.
Analysts warned the change could lengthen gaps between policy actions; forecasting firm Inflation Insights told Reuters its view is that an October 2027 meeting could be the first with no rate deliberations, creating a roughly 12-week gap between possible rate moves.
Investors had widely expected the Fed to hold rates after September’s quarter-point hike, and market pricing showed a lower chance of an immediate follow-up, CNBC noted. The Fed also trimmed its post‑meeting statement and shortened press conferences under Warsh’s leadership.
This article links to related coverage on the site’s Fed meeting context and borrower guidance: Fed rates decision in focus as FOMC meets in Washington and Mortgage interest rates: Fed meets Oct. 28 — what borrowers should watch.
Sources
- Reuters — reported Warsh will set aside one 2027 meeting and two in 2028 for strategy discussions and quoted his press‑conference remarks.
- CNBC — provided the FOMC decision to hold the federal funds rate at 3.75%–4.00% and noted two dissents and the committee’s language that “inflation remains elevated.”
