Fed chair KEVIN WARSH has convened five independent external working groups to
conduct a comprehensive review of the Fed’s monetary policy operating framework.
Mandate areas include balance-sheet management, policy tools, the macroeconomic
effects of artificial intelligence, and data and analytics. Each group will
operate independently, conduct evidence-based research and deliver rigorous
analyzes to the FOMC. The review will assess policy tools, analytical methods
and whether the policy framework can be improved. Appointments include Raj
Chetty to lead the data group, tech investor Marc Andreessen to lead the
productivity and employment group, and former White House CEA chair Greg Mankiw
as co-leader of the inflation group. Warsh said the U.S. economy has undergone
generational change and faster transformation, and the Fed must ensure it is
optimally positioned to achieve price stability and maximum employment.
