Gold May See Greater Volatility if the Fed Cuts FOMC Meetings to Six a Year
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The idea of reducing the number of FOMC meetings from eight to six per year, proposed by Federal Reserve Chair Kevin Warsh, could make gold prices more volatile in response to economic data. Hua Seng Heng analysts note that if the interval between meetings lengthens, investors will rely more heavily on monthly economic figures such as CPI, PCE, and nonfarm payrolls, causing gold prices to react to each data release more quickly and sharply. Moreover, each meeting may carry greater weight, and if the outcome diverges from market expectations, it could trigger heightened volatility across gold, currencies, bonds, and equities. The proposal is still under discussion within the Fed and has yet to be formally concluded.
