Fed Taps Global Experts for Policy Review
Former RBI governor Raghuram Rajan has joined the Federal Reserve's balance sheet policy task force, along with economist Raj Chetty and Microsoft executive Asha Sharma. The three have been appointed to independent panels by US Federal Reserve Chairman Kevin Warsh to review monetary policy tools.
The task forces will operate independently and provide feedback to the Federal Open Market Committee on the effectiveness of the Fed's current balance sheet regime, including its asset holdings and their role in implementing monetary policy.
Rajan, who predicted the 2008 global financial crisis, will serve on the balance sheet policy task force alongside Harvard economist Karen Dynan and former Federal Reserve governor Jeremy Stein. Chetty, a Harvard University economist, co-led the data task force with McMillon and the University of Chicago economist Kevin Murphy.
The panels are part of Warsh's efforts to ensure the Fed is best positioned to achieve its objectives in this consequential time. The US economy has changed significantly over the last generation, and each task force will carefully consider whether policymakers' means, methods, analytical tools and policy approaches can be improved.