Warsh reshapes the Fed: a 10 to 2 vote to hold, a meeting without a decision and five outside task forces. What awaits markets?

The Federal Reserve held rates at 3.75% to 4.00% in a 10 to 2 vote, but rates were not the biggest news at the 28 October meeting. Kevin Warsh announced the first strategy meeting without a vote for autumn 2027 and set deadlines for recommendations from five task forces led by 15 outside economists and business leaders. One could reconsider a $6.754 trillion balance sheet. Here we examine the full statement and press conference, the origins of the idea and the market response.

Two members sought an immediate hike, including Cook for the first time since joining in 2022

Decision meetings out of 8 in 2027, with one strategy meeting without a vote

Outside co-chairs leading five task forces

Basis points between two- and ten-year yields after the decision, up from 29

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EL7 Research · Central Banks

Thursday 29 October 2026 · Data through the close of 28 October