The Federal Open Market Committee held interest rates at 3.75%-4.00% on Wednesday in a 10-2 vote, while Chair Kevin Warshoutlined plans to dedicate more meetings to monetary policy strategy, reducing the number focused exclusively on rate decisions in 2027 and 2028.

At the Fed’s press conference, Warsh said the Federal Open Market Committee would continue to meet eight times a year, but one meeting in 2027 would focus exclusively on broader monetary policy strategy, with the remaining seven devoted to policy-setting. In 2028, two meetings would be reserved for strategy discussions, leaving six focused on policy decisions.

The changes aim to give policymakers more time to examine longer-term questions about the Fed’s approach and operating framework, Warsh said. He added that eight meetings a year remained the right number, although the committee need not vote on interest rates at every meeting.

The rate decision drew two dissents. Lisa D. Cook and Beth M. Hammack preferred a 25-basis-point increase, which would have lifted the federal funds rate to 4.00%-4.25%.

The Fed said economic activity had been expanding at a strong pace, with domestic spending remaining resilient, productivity strong and capital investment robust. Job gains had kept pace with the workforce, while the unemployment rate had changed little.

Inflation remained elevated, the statement said, adding that policymakers needed more information to determine the appropriate policy stance to support a timely return to the Fed’s 2% inflation goal. The central bank also reiterated its commitment to maintaining ample reserves.

Warsh said the revised meeting structure would allow policymakers to separate discussions about the longer-term monetary policy framework from decisions responding to current economic conditions. The Fed is also examining how it operates through multiple task forces, including one focused on communications.

Warsh said he opposed forward guidance outside exigent circumstances or a crisis, arguing that policymakers should retain flexibility rather than signal the likely path of interest rates in advance.

On the economy, Warsh said higher interest rates had affected investment decisions, including spending on artificial intelligence infrastructure. Credit spreads had widened for some assets, while financial conditions had tightened in certain areas but not significantly in others.

He also said capital expenditure was not only strong but broadening across the economy. That made it harder to attribute economic resilience to a small group of sectors than it had been a few quarters earlier.

The meeting changes would give the Fed more dedicated time to assess its policy framework, while the rate decision underscored divisions among policymakers over the appropriate response to elevated inflation and resilient economic activity.  End