Warsh Names Five Expert Task Forces to Reassess Federal Reserve Frameworks

Overview

• On Thursday, July 9, Fed Chair Kevin Warsh announced five externally led task forces and named co‑leaders including Armínio Fraga, Mervyn King and Raghuram Rajan to review core Fed practices.
• Each group will focus on a specific area: central‑bank communication, balance‑sheet policy, the data and analytics used for decisions, inflation frameworks, and the effects of new technologies on productivity and jobs.
• The task forces will work independently but receive technical support from Fed staff and are charged with producing frank, evidence‑based assessments and recommendations by the end of 2026.
• Any operational or policy changes recommended by the groups would not be automatic because they must be adopted through the Fed’s internal process and gain broad agreement among governors and regional presidents.
• Warsh launched the review as part of a broader push to modernize the Fed after raising concerns about the trillions‑dollar balance sheet, the timeliness of economic data, and how new technologies may change labor and productivity, which could alter how markets and households respond to policy.