New Delhi [India]: The United States Federal Reserve has appointed several prominent Indian-origin experts to high-level task forces as part of a sweeping institutional review aimed at strengthening its monetary policy framework in the wake of persistent inflation and post-pandemic economic challenges.
The five task forces, announced by newly appointed Federal Reserve Chair Kevin Walsh, are expected to reassess key areas of the central bank's functioning, including balance sheet management, economic data, productivity, and the impact of emerging technologies on the economy.
Former Reserve Bank of India (RBI) Governor Raghuram Rajan has been named to the Balance Sheet Policy Task Force, which will examine how the Federal Reserve manages its vast portfolio of financial assets and how those holdings influence monetary policy.
Rajan will serve alongside noted economists Karen Dynan and former Federal Reserve Governor Jeremy Stein.
Rajan, who served as RBI Governor between 2013 and 2016, is widely recognised for stabilising India's economy during a period of financial volatility and implementing key banking sector reforms.
Earlier, as Chief Economist at the International Monetary Fund (IMF), he gained global attention for warning about vulnerabilities in the global financial system before the 2008 financial crisis.
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Meanwhile, Harvard economist Raj Chetty has been appointed to co-lead the Data Task Force, which will focus on improving the collection, analysis and use of economic data in policymaking. Chetty is renowned for pioneering the use of large-scale administrative and real-time data to study income inequality, economic mobility and labour markets in the United States. His expertise is expected to enhance the Federal Reserve's ability to interpret rapidly evolving economic conditions.
The technology dimension of the review will be led in part by Asha Sharma, a senior Microsoft executive, who has been appointed to the Productivity and Jobs Task Force. The panel will assess how emerging technologies, particularly artificial intelligence, are transforming productivity, employment and long-term economic growth. Sharma's experience in leading large-scale digital businesses is expected to help the Fed better understand the economic implications of technological change.
The three Indian-origin experts join a distinguished group of global policymakers, economists and business leaders that includes former Bank of England Governor Mervyn King, Nobel laureate Thomas Sargent and venture capitalist Mark Andreessen.
According to Federal Reserve Chair Kevin Walsh, the task forces are intended to bring greater transparency, fresh thinking and diverse expertise into the institution's decision-making process. The initiative comes as the Fed seeks to refine its policy toolkit following years of elevated inflation and significant economic shifts triggered by the COVID-19 pandemic.
The Federal Reserve, the US central bank, is responsible for setting monetary policy, regulating banks, maintaining financial stability and keeping inflation under control. It influences economic activity primarily by adjusting interest rates and managing its balance sheet through the purchase and sale of government securities.
During the pandemic, the Fed expanded its balance sheet to nearly $9 trillion to support the US economy. It is now gradually reducing those holdings while attempting to bring inflation—currently at 3.5% as of June 2026—back to its long-term target of 2%.
The newly constituted task forces are expected to play a central role in shaping the Federal Reserve's future policy framework. While the Balance Sheet Policy Task Force reviews the sustainability of current asset management strategies, the Data Task Force will work on improving economic forecasting, and the Productivity and Jobs Task Force will examine how technological innovation will influence growth and employment.
The appointments also underscore the growing influence of Indian-origin economists and technology leaders in shaping global economic policymaking at some of the world's most important financial institutions.
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