Federal Reserve Sets Up Five Task Forces to Review Monetary Policy Approach

July 10, 2026
By Mintesinot Nigussie

The US Federal Reserve has established five task forces to examine how it conducts monetary policy, including its approach to inflation, communication, economic data, employment and its balance sheet strategy.

Federal Reserve Chairman Kevin Warsh said the reviews are aimed at strengthening the central bank’s ability to achieve its dual mandate of price stability and maximum employment amid significant changes in the US economy.

"The U.S. economy has changed significantly over the last generation, and never more so than right now," Warsh said. "Each task force will carefully consider whether policymakers' means and methods, analytical tools and policy approaches can be improved upon."

The task forces will be led by external advisers, including economists, business executives and former central bankers, working alongside Federal Reserve staff. The groups will operate independently and provide findings to the Federal Open Market Committee (FOMC).

One task force will review the Federal Reserve’s communication strategy and how it explains policy decisions during periods of uncertainty. It will be led by Peter R. Fisher of the University of Washington, Arminio Fraga, former president of the Central Bank of Brazil, and Mervyn King, former governor of the Bank of England.

Another group will assess the costs and institutional implications of the Federal Reserve’s balance sheet policy. It will include Karen Dynan of Harvard University, Raghuram Rajan, former governor of the Reserve Bank of India, and Jeremy Stein, former Federal Reserve governor.

A separate task force will focus on improving the quality and timeliness of economic data used in policymaking. Its members include Harvard economist Raj Chetty, former Walmart CEO Doug McMillon and University of Chicago economist Kevin Murphy.

The Federal Reserve will also examine the impact of emerging technologies, including artificial intelligence, on productivity and employment. The task force will be led by Marc Andreessen, cofounder of Andreessen Horowitz, Stanford economist Charles I. Jones and Microsoft executive Asha Sharma.

A fifth task force will revisit how the central bank analyses inflation drivers and responds to price pressures. It will include Harvard economist Greg Mankiw, Nobel laureate Thomas Sargent and William White, former economic adviser at the Bank for International Settlements.

The Federal Reserve said the reviews are intended to improve its analytical tools and policy frameworks as it navigates changes in the economic environment.

Source: FSX Business News