Fed Chair Kevin Warsh Is Considering Fewer Annual FOMC Meetings, Which Would Be Disastrous for Wall Street

Removed forward-looking guidance from Federal Open Market Committee (FOMC) meeting statements (a break of a more-than two-decade tradition). According to a July 31 New York Times report, Warsh has hinted at the possibility of conducting fewer FOMC meetings. Reducing transparency has its limitsArguably, the most fundamental change to Warsh's early tenure was his removal of forward-looking guidance. Since Warsh axed this guidance, bond traders have been selling 10-year and 30-year Treasury bonds, thereby pushing up yields and borrowing costs. But reducing the number of annual FOMC meetings and further inhibiting transparency would, I believe, backfire on Wall Street.