In a policy switch, the Fed says its October 2028 meeting will not see a vote on interest rates

The Federal Reserve will use its October meeting in 2027 as a nonvoting session, a departure that is part of a broader initiative from Chairman Kevin Warsh aimed at reducing the central bank’s market footprint.

According to an announcement Thursday, the rate-setting Federal Open Market Committee will set aside its Oct. 26-27 session for “the discussion of broad monetary policy strategy issues.”

Warsh announced the move at his October news conference, though he did not set a date.

In 2027, there will still be seven voting meetings, with the October session set up as extra time for policy deliberation without a formal vote or post-meeting statement.

“Now, what’s the reasoning behind this change? To me, it’s quite straightforward,” the chairman said in explaining his rationale. “Getting policy right involves assessing near-term developments at timely, regular, and information-rich intervals.”

“But it’s equally important we reserve time and space, as an intellectually diverse group, for strategic deliberations—for thinking anew about big questions, looking out over longer time horizons, focusing, as I say, on the left side of the decimal point,” he said.

Warsh has been critical of the Fed’s prior communications strategy, saying policymakers spent too much time providing guidance on policy moves that handcuffed them when it came time to make decisions.