Federal Reserve Chairman Walsh forms external expert team to review monetary policy framework

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ME News message, July 10 (UTC+8): Federal Reserve Chairman Kevin Warsh has formed five working groups to conduct a comprehensive review of the Federal Reserve’s monetary policy operating mechanism, covering areas including balance sheet management, policy tools, and the impact of artificial intelligence. The Fed said that each working group will operate independently, carry out research based on facts, and submit rigorous analysis results to the Federal Open Market Committee. The working groups will assess whether there is room for improvement in policy tools, analytical methods, and the policy framework. The review team includes several well-known economists and former central bank officials. Among them, Harvard economist Raj Chetty will participate in leading the data working group, tech investor Marc Andreessen will be responsible for the productivity and employment working group, and former White House Council of Economic Advisers Chairman Greg Mankiw will co-lead the inflation working group. Warsh said that the U.S. economy has undergone tremendous changes over the past generation, the pace of transition is faster today, and the Fed needs to ensure it is in the best possible position to achieve its dual goals of stable prices and promoting employment. (Source: Jinshi)
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