The U.S. Federal Reserve announces the leaders and participants of five task forces that will review parts of its monetary policy framework. According to reports, Indian-origin economists Raghuram Rajan and Raj Chetty, along with Microsoft executive Asha Sharma, are named to prominent panels. The review is presented as part of an effort to strengthen the Fed’s ability to meet its dual mandate of maintaining price stability and supporting maximum employment. The panels are described as jointly led by experts drawn from academia, business and central banking, with Fed staff support, and they work independently to produce evidence-based recommendations for the Federal Open Market Committee (FOMC).
The task forces cover multiple policy areas: a balance sheet policy review is expected to examine the costs and benefits of the Fed’s current balance sheet strategy; a data task force focuses on data quality and real-time indicators for policymaking; and a productivity and jobs panel studies how emerging technologies, including artificial intelligence, affect productivity, employment and growth. Other panels address the Fed’s communication strategy and its inflation framework. The review is expected to run through this year, with findings presented to the FOMC later in the process.
