Rajan, Chetty and Sharma join Fed review of US monetary policy

Washington,UPDATED: Jul 10, 2026 21:24 IST

Former RBI Governor Raghuram Rajan, Delhi-born American economist Raj Chetty and senior Microsoft executive Asha Sharma are among the experts appointed by the US Federal Reserve to review how it conducts monetary policy. The move is part of a wider exercise launched by newly appointed Federal Reserve chairman Kevin Warsh.

The Federal Reserve has set up five task forces to examine key areas linked to monetary policy. The panels also include former Bank of England Governor Mervyn King, former Walmart CEO Doug McMillon, Nobel laureate Thomas Sargent and Silicon Valley venture capitalist Marc Andreessen.

In a statement on Thursday, Warsh said, "I am honoured 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 said the US economy has changed significantly over the last generation, and each task force will consider whether policymakers' means, methods, analytical tools and policy approaches can be improved.

The Federal Reserve said the five task forces will examine areas central to the broad conduct of monetary policy. Co-led by external advisers, including economists, business leaders and former central bank practitioners, the panels will be supported by Federal Reserve staff but will operate independently. They have been asked to follow the evidence, provide candid feedback and produce rigorous findings for the Federal Open Market Committee.

Rajan will serve on 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, benefits and institutional implications of the Federal Reserve's current balance sheet regime, including its asset holdings and their role in implementing monetary policy.

Chetty, a Harvard University economist, is co-leading the Data task force with McMillon and University of Chicago economist Kevin Murphy. The group will focus on improving the quality and timeliness of real-world economic signals that inform the Federal Reserve's policy decisions. The Federal Reserve noted that Chetty is known for pioneering the use of large administrative and real-time datasets to study economic mobility, inequality and labour markets in the United States.

Sharma, executive vice president of Microsoft and CEO of Xbox, will serve on the Productivity and Jobs task force alongside Andreessen and Stanford economist Charles I Jones. The panel will assess the economic impact of emerging general-purpose technologies, including artificial intelligence, on productivity, employment and economic growth.

The Communications task force, led by Peter Fisher, Arminio Fraga and Mervyn King, will review how the Federal Reserve communicates its policy deliberations and decisions during periods of uncertainty. The Inflation Frameworks task force, led by Harvard economist Greg Mankiw, Sargent and former Bank for Settlements adviser William White, will revisit how the central bank understands and responds to the drivers of inflation.

The five task forces announced by Warsh bring together economists, business leaders and former central bankers to review the Federal Reserve's tools, communication and policy approach, with Rajan, Chetty and Sharma among those taking part.

With PTI Inputs

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