Kevin Warsh, the new Federal Reserve Chairman, has selected Daniel Covitz and Eric Engstrom as his advisers, pulling two deeply embedded economists from within the central bank’s own ranks.
Covitz currently serves as Deputy Director in the Program Direction Section of Research and Statistics at the Federal Reserve Board. Engstrom holds the title of Associate Director in the Program Direction Section of Monetary Affairs.
Why these two matter
Covitz brings deep expertise in credit markets and asset bubbles. Engstrom focuses on inflation dynamics and what economists call “macro-financial linkages,” studying how financial markets and the broader economy interact. His positioning in Monetary Affairs puts him at the nexus of interest rate decisions and their downstream effects.
The two aren’t strangers to collaboration. Covitz and Engstrom co-authored a FEDS Note on February 12, 2026, analyzing the recent surge in far-forward nominal Treasury rates. That paper examined why investors are demanding higher yields on long-dated government bonds, a question that sits at the heart of current monetary policy debates.
