Fed Chair Waller is considering reducing the number of monetary policy meetings or further adjusting the policy communication mechanism.

According to a report by the media on Friday citing informed sources, Federal Reserve Chairman Waller is considering reducing the number of routine monetary policy meetings held by the Fed each year as part of his push for reform within the central bank. The report stated that Waller raised this idea at the Federal Open Market Committee (FOMC) meeting held this week, discussing adjustments to the frequency of monetary policy meetings. However, a Fed spokesperson declined to comment on this matter. Currently, the Fed holds eight two-day monetary policy meetings each year and announces interest rate decisions and policy statements after these meetings. This week, the Fed decided to maintain the target range for the federal funds rate at 3.5% to 3.75% with a vote of 9 in favor and 3 against. In fact, since taking office as Fed Chairman in May of this year, Waller has repeatedly signaled a desire to adjust the Fed's operations and communication methods. He previously indicated that he was considering reducing the number of press conferences following interest rate decisions in order to lessen the market's dependence on forward guidance, allowing financial markets to base future policy direction more on economic data and market pricing. Additionally, Waller recently announced the establishment of five special working groups to assess various aspects of the Fed, including policy communication mechanisms, economic data systems, and balance sheet management, and to study potential reform proposals. Market participants believe that reducing the frequency of monetary policy meetings could mean further changes in the pace of Fed policy adjustments and communication methods; however, discussions on this topic are still in the preliminary stages, and it is uncertain whether this will be implemented.