Warsh Forms Task Forces to Overhaul Monetary Policy, Leaving Crypto Off the Table

New Federal Reserve Chair Kevin Warsh has formed five external task forces to overhaul monetary policy. The groups are tasked with rethinking how the central bank communicates, manages its balance sheet, uses data, frames inflation, and responds to the productivity effects of artificial intelligence.

The task forces will examine topics such as forward guidance, inflation targeting, and the Fed's massive portfolio of Treasury and mortgage-backed securities. The groups are stacked with heavyweight names, including venture capitalist Marc Andreessen and former Bank of England governor Mervyn King.

Warsh has publicly described his vision as a 'regime change' in how the Fed conducts monetary policy. He wants less reliance on forward guidance and a tighter focus on the dual mandate: maximizing employment and stabilizing prices.