Former Reserve Bank of India (RBI) governor Raghuram Rajan, Delhi-born economist Raj Chetty and Microsoft executive Asha Sharma have been appointed to key task forces set up by the US Federal Reserve to review how the monetary policy.
The newly appointed Federal Reserve Chairman, Kevin Warsh, announced five task forces to examine critical areas of monetary policymaking, including communications, balance sheet policy, data, productivity and jobs, and inflation frameworks.
According to the Federal Reserve, the panels will be supported by its staff but will function independently while providing recommendations to the Federal Open Market Committee (FOMC).
The panel will examine the costs, benefits and institutional implications of the Federal Reserve's current balance sheet regime.
The panel will focus on improving the quality and timeliness of economic data used in the Federal Reserve's policy judgements.
Chetty is recognised for his work using real-time and administrative data to study economic mobility, inequality and labour markets.
Microsoft Executive Vice President and Xbox CEO Asha Sharma have been appointed to the Productivity and Jobs task force alongside Marc Andreessen and Stanford economist Charles I Jones.
The group will assess the economic impact of new general-purpose technologies, including artificial intelligence, to inform the Federal Reserve's policy judgments.
Warsh outlines review of monetary policy
Announcing the initiative, Warsh said the review comes at a time when the US economy is undergoing significant changes.
"The Federal Reserve's commitment to price stability and maximum employment is unwavering. As is our resolve to pursue our mandate with rigor," Warsh said.
"The US economy has changed significantly over the last generation, and never more so than right now. Each task force will carefully consider whether policymakers' means and methods, analytical tools and policy approaches can be improved upon. I am honored that the best minds from a range of disciplines have agreed to work with us to sharpen our performance as an institution. The goal is straightforward: to ensure the Fed is best positioned to achieve our objectives in this consequential time," he added.
The task forces also include former Bank of England Governor Mervyn King, Nobel laureate Thomas Sargent, former Walmart CEO Doug McMillon and Silicon Valley venture capitalist Marc Andreessen.
Other task forces
The Communications task force will be led by Peter R Fisher, Arminio Fraga and Mervyn King. It will review how the Federal Reserve communicates policy deliberations and decisions during periods of uncertainty.
The Inflation Frameworks task force will be led by Harvard economist Greg Mankiw, Nobel laureate Thomas Sargent and former Bank for International Settlements adviser William White. The panel will revisit how the Federal Reserve understands and responds to the drivers of inflation.
According to the Federal Reserve, all five task forces will be co-led by economists, business leaders and former central bank practitioners with expertise in their respective fields. The central bank said the groups would operate independently with a mandate to follow the evidence, provide candid feedback, and produce rigorous findings for the Federal Open Market Committee.