Raghuram Rajan, Raj Chetty and Asha Sharma Join High-Level US Fed Task Forces

The US Federal Reserve has appointed former Reserve Bank of India (RBI) Governor Raghuram Rajan , Delhi-born American economist Raj Chetty , and senior Microsoft executive Asha Sharma to key task forces reviewing the central bank's monetary policy framework under newly appointed Federal Reserve Chair Kevin Warsh .

Announcing the initiative, Warsh said the US economy has undergone significant changes over the past generation, making it necessary to reassess the Federal Reserve's policy tools, analytical methods and decision-making processes. The five independent task forces will examine core aspects of monetary policy and submit evidence-based recommendations to the Federal Open Market Committee (FOMC) .

Rajan has joined the Balance Sheet Policy task force alongside former Federal Reserve Governor Jeremy Stein and Harvard economist Karen Dynan. The panel will evaluate the costs, benefits and institutional implications of the Fed's balance sheet, including its asset holdings and their role in implementing monetary policy.

Chetty, a Harvard economist known for his work with real-time economic data, will co-lead the Data task force with former Walmart CEO Doug McMillon and University of Chicago economist Kevin Murphy. The group will focus on improving the quality and timeliness of economic indicators used in policy decisions.

Sharma, Executive Vice President at Microsoft, has been named to the Productivity and Jobs task force with venture capitalist Marc Andreessen and Stanford economist Charles I. Jones. The panel will assess the economic impact of artificial intelligence and other emerging technologies on productivity, employment and long-term growth.

The review also includes a Communications task force, featuring former Bank of England Governor Mervyn King, and an Inflation Frameworks panel that includes Nobel laureate Thomas Sargent.

The broad review reflects the Federal Reserve's effort to modernise its policymaking as economic conditions evolve. The participation of globally recognised economists, business leaders and technology executives highlights the significance of the exercise and its potential contribution to ongoing monetary policy debates and the future direction of US central banking.