Federal Reserve Chairman Warsh assembles an external expert team to review the monetary policy framework.

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Golden Finance reported that on July 10, Federal Reserve Chair Kevin Warsh set up 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 Federal Reserve said that each working group will operate independently, carry out research based on facts, and submit rigorous analysis findings to the Federal Open Market Committee. The working groups will assess whether there is room for improvement in the policy tools, analytical methods, and policy framework. Members of the review team include several well-known economists and former central bank officials. Among them, Harvard economist Raj Chetty will participate in helping lead the data working group; technology investor Mark Andersen will be responsible for the productivity and employment working group; and Greg Mankiw, the former chair of the White House Council of Economic Advisers, will co-lead the inflation working group. Warsh said that the U.S. economy has undergone tremendous changes over the past generation, and the pace of the current transition is faster; the Federal Reserve needs to ensure it is in the best possible condition to achieve the dual goals of stable prices and promoting employment.
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