Federal Reserve Chairman Kevin Warsh announced the formation of five task forces designed to reform the central bank, including to overhaul its conduct of monetary policy and to examine the effects of artificial intelligence. Warsh, fresh out of his first meeting as Fed chairman, announced the “key initiative” during a press conference Wednesday afternoon. He said the five areas the task forces will work in are “central to the broad conduct of monetary policy.”
The first task force will focus on Fed communications, the second on the Fed’s balance sheet, the third on the use and reliance on existing data sources, another will focus on productivity and jobs, and the final task force will examine the Fed’s inflation frameworks.
“These subjects are timely, consequential, and in my view worthy of a fresh look,” Warsh told reporters.
Warsh said the Fed’s monetary policy committee participants discussed the task forces and their goals over the past two days of meetings. He said that members of the task forces will be from both inside and outside the economics profession and will be supported by subject-matter specialists on the Fed’s staff.
“And they’ll have a straightforward charge — start with first principles, ask hard questions, examine current practice, consider alternatives, and ultimately propose next steps for policymaker consideration,” the new chairman said.
