Federal Reserve Chairman Kevin Warsh has privately raised the possibility of cutting the number of annual FOMC policy meetings, according to people familiar with the discussions. Currently, the Fed holds eight scheduled meetings per year. A reduction would represent the most significant structural change to the Fed's operating calendar in decades and would affect how markets price rate expectations across the short and intermediate term.
For Armada's traditional repo desk, FOMC meeting cadence is embedded in how SOFR forwards and term repo rates are structured. Fewer decision points would widen the uncertainty bands between meetings and could increase volatility in overnight and term rate markets around each remaining meeting. This has direct implications for pricing term repo transactions with hedge fund and asset manager counterparties, and for managing exposure around Fed-linked fixings.