Kevin Warsh just finished his first FOMC meeting as Federal Reserve Chairman, and he’s already reshaping the institution from the inside. The committee held the federal funds rate steady at 3.25% to 3.75%, but the real news was what came alongside it: five task forces designed to fundamentally reassess how the Fed communicates, manages its balance sheet, sources data, thinks about artificial intelligence, and frames its approach to inflation.
The task forces and what they signal
The five task forces cover a surprisingly wide range of Fed operations. One will focus on communication efficiency. Another will examine balance sheet management. A third task force will review how the Fed sources its data. The fourth task force tackles artificial intelligence’s impact on productivity and jobs. The fifth task force will reassess the frameworks the Fed uses to manage inflation.
Warsh reportedly emphasized that the FOMC is united in pursuing the 2% inflation target.
How Warsh got here
