Raghuram Rajan, Raj Chetty Among Experts Leading US Fed Policy Review Panels

The US Federal Reserve has announced the leaders of five task forces that will review its monetary policy framework, with Indian-origin economists Raghuram Rajan and Raj Chetty, and Microsoft executive Asha Sharma among the experts selected for key panels.

The initiative was announced by Fed Chair Kevin Warsh during his first press conference on June 17 after taking charge.

Warsh said the review aims to strengthen the central bank’s ability to meet its dual mandate of maintaining price stability and supporting maximum employment.

The Federal Reserve said each task force will be jointly led by experts from academia, business and central banking, with support from Fed staff.

The panels will function independently and submit evidence-based recommendations to the Federal Open Market Committee (FOMC). The review is expected to be completed by the end of the year.

Former Reserve Bank of India Governor Raghuram Rajan will be part of the Balance Sheet Policy task force along with Harvard economist Karen Dynan and former Federal Reserve Governor Jeremy Stein.

The panel will examine the costs and benefits of the Fed’s current balance sheet strategy, including its asset holdings and their role in monetary policy implementation.

Rajan, currently a professor at the University of Chicago Booth School of Business, served as RBI governor from 2013 to 2016.

During his tenure, he helped India manage global financial volatility, strengthened banking sector reforms and played a key role in establishing the country’s inflation-targeting system.

Harvard economist Raj Chetty will co-lead the Data task force with former Walmart CEO Doug McMillon and University of Chicago economist Kevin Murphy.

The panel will focus on improving economic data quality and developing better real-time indicators for policymaking. Chetty is known for his research using large datasets to study economic mobility, inequality and labour markets.

Microsoft Executive Vice President Asha Sharma will serve on the Productivity and Jobs task force alongside venture capitalist Marc Andreessen and Stanford economist Charles I. Jones.

The panel will study the impact of emerging technologies, including artificial intelligence, on productivity, employment and economic growth.

The remaining task forces will examine the Fed’s communication strategy and inflation framework.

The Communications panel will review how the central bank conveys policy decisions, while the Inflation Frameworks panel will assess how the Fed responds to changing inflation drivers.

The findings from all five panels will be presented to the FOMC later this year as part of a broader review of the Federal Reserve’s monetary policy approach.