Federal Reserve Chair Kevin Warsh on Thursday announced the members of five new task forces that will review key aspects of the United States central bank's monetary policy framework, bringing together leading economists, business executives and former central bank officials.
Warsh first revealed plans for the review last month, saying the task forces would assess the Federal Reserve's communications, balance sheet, economic data, productivity and employment, and its approach to inflation.
The review will also examine how emerging technologies, including artificial intelligence, could influence future policymaking.
"The Federal Reserve's commitment to price stability and maximum employment is unwavering. As is our resolve to pursue our mandate with rigor," Warsh said in a statement.
"The U.S. economy has changed significantly over the last generation, and never more so than right now. Each task force will carefully consider whether policymakers' means and methods, analytical tools and policy approaches can be improved upon."
Warsh said he was honoured that experts from a broad range of disciplines had agreed to participate, adding that the goal was to ensure the Federal Reserve remained well positioned to fulfil its dual mandate.
Each task force will be supported by Federal Reserve staff but will operate independently, providing evidence-based recommendations and findings to the Federal Open Market Committee (FOMC).
Communications
The communications task force will examine how the Federal Reserve explains its policy decisions and deliberations during periods of economic uncertainty.
It will be led by Peter R. Fisher, professor at the University of Washington's Foster School of Business; Arminio Fraga, founder and chairman of Gávea Investimentos and former president of the Central Bank of Brazil; and Mervyn King, former Governor of the Bank of England.
Balance sheet policy
The balance sheet group will review the costs, benefits and long-term implications of the Federal Reserve's current balance sheet strategy.
Its leaders are Karen Dynan, professor of economics at Harvard University; Raghuram Rajan, professor at the University of Chicago Booth School of Business and former Governor of the Reserve Bank of India; and Jeremy Stein, Harvard professor and former Federal Reserve Governor.
Data
The data task force will focus on improving the quality, accuracy and timeliness of the economic information used to guide monetary policy decisions.
It will be led by Raj Chetty of Harvard University, Doug McMillon, former president and chief executive of Walmart, and Kevin Murphy, professor of economics at the University of Chicago.
Productivity and jobs
The productivity and jobs task force will assess how emerging technologies, particularly artificial intelligence, are reshaping labour markets and productivity growth.
Its members include Marc Andreessen, co-founder of Andreessen Horowitz; Charles I. Jones, Stanford University professor currently on leave at Anthropic; and Asha Sharma, executive vice president and Xbox chief executive at Microsoft.
Inflation frameworks
The inflation task force will reassess how the Federal Reserve evaluates the drivers of inflation and how those insights should influence future policy decisions.
The panel will be led by Greg Mankiw, Harvard University professor and former chair of the Council of Economic Advisers; Thomas Sargent, New York University professor and Nobel laureate; and William White, senior fellow at the C.D. Howe Institute and former economic adviser at the Bank for International Settlements.
Warsh said the review is intended to ensure the Federal Reserve's analytical tools and policy framework evolve alongside a rapidly changing economy while preserving its commitment to maintaining price stability and supporting maximum employment.
