The US Federal Reserve has appointed three Indian-origin leaders - former RBI Governor Raghuram Rajan, Harvard economist Raj Chetty, and Microsoft executive Asha Sharma- to lead three of the five task forces that will conduct a comprehensive review of how the central bank formulates and implements monetary policy.
The appointments were announced by the Federal Reserve on Thursday, July 9. The initiative was launched by Federal Reserve Chair Kevin Warsh, who said the review aims to ensure the Fed's monetary policy framework.
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Raghuram Rajan
Raghuram Rajan served as the 23rd Governor of the Reserve Bank of India (RBI). from 2013-2016. Before that, he served as the Chief Economist of the International Monetary Fund (IMF) from 2003-2006. Rajan is widely known for warning about vulnerabilities in the global financial system before the 2008 financial crisis.
Raghuram Rajan is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. Additionally, he serves as a senior fellow at the Hoover Institution at Stanford University.
Rajan has been appointed to the Balance Sheet Policy Tas Force by the US Federal Reserve. He will serve alongside Karen Dynan, a Harvard University economist and former US Treasury chief economist, and Jeremy Stein, a former Federak Reserve Governor and Harvard economist. The panel will review how the Federal Reserve manages its balance sheet and asset holdings after years of quantitative easing and other unconventional monetary policies.
Asha Sharma
Asha Sharma, Executive Vice President and Xbox CEO at Microsoft, has been appointed to the Productivity and Jobs Task Force. Her appointment reflects the Federal Reserve's effort to bring technology-sector expertise into discussions about AI's impact on the economy. She will work alongside venture capitalist Marc Andreessen and Stanford economist Chad (Charles) Jones.
The Task Force will study how artificial intelligence and technological innovation are expected to affect productivity, employment and long-term economic growth.
Raj Chetty
Raj Chetty is one of the world's leading economists known for research on economic mobility, inequality, education and public policy. He is a professor at Harvard University and has led large-scale research projects using administrative data to study economic opportunity.
Chetty has been appointed to co-lead the Data Task Force. He will work alongside Doug McMillon, CEO of Walmart and Kevin Murphy, economist at the University of Chicago. The task force will examine how the Federal Reserve can improve the quality, timeliness and usefulness of economic data used in monetary policy decisions.
Why Has The Fed Created These Task Forces?
The Federal Reserve has established five independent task forces to evaluate different aspects of monetary policy operations and recommend reforms by the end of this year. The review will examine Balance Sheet policy, Economic data and measurement, Productivity and jobs, Inflation frameworks, and Communication strategy.
According to Chair Kevin Warsh, the review is intended to help the Fed adapt to changing economic conditions, technological advances and evolving policy changes.
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