According to a WSJ report, Fed Chair Kevin Warsh has appointed two longtime Fed economists, Daniel Covitz and Eric Engstrom, as advisors. The two will assist him in formulating monetary policy and economic analysis. This is one of Warsh's first major personnel moves since taking office, following his earlier announcement of the establishment of five working groups to reassess the Fed's communication methods, data analysis, and balance sheet management. Last year, Engstrom published research stating that the U.S. economy faces a rising risk of "mild stagflation." The two also co-authored a study in February of this year indicating that the increase in long-term U.S. Treasury yields is primarily driven by supply shock risk premiums and widening fiscal deficits, rather than a loss of market confidence in the Fed's ability to control inflation.