Federal Reserve Chairman Warsh will release more details about the special task force in the coming weeks.

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Jinse Finance reported that on June 29, according to The New York Times, shortly after taking over as the Fed Chair, Walsh wrote a letter to more than 20,000 employees of the central bank, setting out how he would lead the institution. He has long argued that the institution urgently needs a thorough overhaul. In a letter dated June 2, Walsh pledged to push for “open and sober discussions regarding the Fed’s strategy, policy, and operations.” The core of Walsh’s strategy is a series of special working groups that focus on what he considers to be the “five key” areas in the broad implementation process of monetary policy. These areas include: the Fed’s communication approach; its $6.7 trillion portfolio of government bonds and mortgage-backed securities (MBS); the data sources it prioritizes; productivity trends and employment conditions; and the models and metrics used to assess inflation. Sources familiar with the matter said Walsh will release more details about these special working groups in the coming weeks. His goal is to complete the related work by the end of the year, after which policymakers will review what reforms should be implemented and exactly how they should be carried out. Each working group will be led by several external individuals personally selected by Walsh, with assistance from specific staff members chosen internally from the Fed. (Jin10)
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