Former Reserve Bank of India (RBI) Governor Raghuram Rajan has been appointed to a key US Federal Reserve task force that will examine the central bank’s monetary policy framework and suggest long-term reforms. The appointment was announced by Federal Reserve Chair Kevin Warsh as part of a broader initiative to review and improve the institution’s policy approach.
Warsh revealed the formation of five specialized task forces on July 10, stating that the panels would analyze the Federal Reserve’s existing strategies and explore possible changes to help the central bank meet its objectives in a rapidly changing economic environment.
Rajan has been selected as co-chair of the Balance Sheet Policy task force, which will examine the advantages, challenges, and wider institutional effects of the Federal Reserve’s balance sheet management approach. Along with his previous role as RBI Governor, Rajan has also served as India’s chief economic adviser and is currently a finance professor at the University of Chicago Booth School of Business.
The Indian economist gained international recognition for raising concerns about vulnerabilities in the global financial system and warning about risks linked to the subprime mortgage market before the 2008 financial crisis.
Another prominent economist, Raj Chetty of Harvard University, has been chosen to co-lead the Liquidity Dependence task force. The panel will evaluate the Federal Reserve’s current liquidity framework and study its impact on the broader economy. Chetty, who leads Harvard’s Opportunity Insights research center, will work alongside experts including Jeremy Stein, Doug McMillon, and Kevin Murphy.
Asha Sharma, chief executive officer of Microsoft’s Xbox division, has been appointed co-chair of the Productivity and Employment task force. Born in India and raised in the United States, Sharma brings experience from senior positions at companies including Meta, Coupang, Instacart, and The Home Depot.
Her appointment comes after Microsoft recently announced major job reductions within its gaming operations. The task force will focus on issues related to productivity, employment trends, and economic growth.
The inclusion of Rajan, Chetty, and Sharma highlights the Federal Reserve’s effort to bring together economists, business leaders, and policy experts from diverse backgrounds as it evaluates future monetary policy directions.
