Three Indian-origin professionals have been selected former Reserve Bank of India Governor Raghuram Rajan, economist Raj Chetty and Microsoft executive Asha Sharma among a distinguished group of economists to serve on newly formed task forces set up by the US Federal Reserve to review the way the world's most influential central bank formulates and implements monetary policy.
The five task forces, announced by Federal Reserve Chair Kevin Warsh, will examine areas ranging from balance sheet management and inflation to economic data, communications and the impact of artificial intelligence on productivity and employment. The recommendations will eventually be presented to the Federal Open Market Committee (FOMC), which sets US monetary policy.
Appointments Highlight India's Growing Influence In Global Economic Policy Making
Among the three appointees, Raghuram Rajan will serve on the Balance Sheet Policy Task Force, which will assess the costs, benefits and long-term implications of the Federal Reserve's balance sheet strategy. Rajan, currently Professor of Finance at the University of Chicago Booth School of Business, previously served as Governor of the Reserve Bank of India and was also the International Monetary Fund's Chief Economist. He will work alongside Harvard economist Karen Dynan and former Federal Reserve Governor Jeremy Stein.
Harvard University economist Raj Chetty has been appointed to the Data Task Force, which has been entrusted with improving the quality and timeliness of economic indicators used by policymakers. Chetty, whose research on economic mobility and inequality has influenced public policy globally, will work with former Walmart CEO Doug McMillon and University of Chicago economist Kevin Murphy to strengthen the Fed's use of economic data in policymaking.
Meanwhile, Microsoft Executive Vice President and Xbox CEO Asha Sharma has been named to the Productivity and Jobs Task Force. The panel will study how emerging technologies, particularly artificial intelligence, are transforming productivity, labour markets and long-term economic growth. Sharma joins venture capitalist Marc Andreessen and Stanford economist Charles I. Jones on the committee.
The appointments are part of a broader review initiated by Warsh soon after assuming office as Federal Reserve Chair. The central bank said the review aims to ensure that its monetary policy framework keeps pace with structural changes in the economy, including technological disruption, evolving labour markets and changing inflation dynamics. Each task force will operate independently with support from Federal Reserve staff and submit recommendations to the FOMC.
Announcing the initiative, Warsh said the US economy has changed significantly over the past generation, making it necessary for policymakers to reassess whether existing analytical tools and policy frameworks remain effective. He added that the Federal Reserve's commitment to maintaining price stability and maximum employment remains unchanged, while emphasising the need to strengthen the institution for future economic challenges.
The review brings together some of the world's most respected economists and former central bankers. Other members include former Bank of England Governor Mervyn King, Harvard economist Greg Mankiw, Nobel laureate Thomas Sargent, former Central Bank of Brazil President Arminio Fraga and former Walmart CEO Doug McMillon. Their collective recommendations are expected to shape discussions on the future direction of US monetary policy, even though the task forces themselves do not possess decision-making authority.
For India, the appointments reinforce the growing global influence of Indian-origin professionals in economics, finance and technology. Rajan, Chetty and Sharma bring expertise spanning central banking, academic research and artificial intelligence, reflecting the increasingly interdisciplinary nature of monetary policymaking as central banks confront new economic realities driven by technology, productivity shifts and global uncertainty. |
