Federal Reserve forms five external working groups to comprehensively review monetary policy operating mechanism

BlockBeats News, July 10 — Federal Reserve Chairman Kevin Warsh has formed five working groups to conduct a comprehensive review of the Fed's monetary policy operational mechanism, covering areas such as balance sheet management, policy tools, and the impact of artificial intelligence. The Fed stated that each working group will operate independently, conduct fact-based research, and submit rigorous analysis results to the Federal Open Market Committee. The working groups will evaluate 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 co-lead the data working group, technology 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 the U.S. economy has undergone tremendous changes over the past generation, and the current pace of transformation is even faster. The Fed needs to ensure it is in the best possible position to achieve its dual goals of price stability and maximum employment. (Jin Ten)