Fed Names Outside Advisers to Lead Five Monetary Policy Task Forces

WASHINGTON -- The Federal Reserve on Thursday named the external leaders of five task forces it has created to review how the central bank conducts monetary policy, a step that could reshape the institution's analytical methods, communications, and inflation framework.

<cite index="20-3">Chairman Kevin Warsh tapped a broad and intellectually diverse group of economists and former central bankers to oversee the five task forces, covering technical issues like management of its balance sheet as well as forward-leaning ones like the impact of artificial intelligence,</cite> according to a Reuters report.

<cite index="13-4">Warsh, who became Fed chief in May, entered the job having called for "regime change" at the central bank and a shakeup of how it conducts policy.</cite>

<cite index="14-3">The task forces were first announced following the Federal Open Market Committee's June 16-17 policy meeting, Warsh's first as Fed chair.</cite> <cite index="14-4">On Thursday, the central bank formally introduced the 15 experts selected to lead the review panels.</cite>

<cite index="13-3">The leaders include prominent academics, former central bankers, and corporate executives asked to look at the Fed's communications strategy, its $6.7 trillion balance sheet, use and reliance on existing data sources, productivity and jobs, and inflation frameworks.</cite>

<cite index="19-3">The five task forces were established by Warsh as one of his first acts after becoming the 17th chair of the Federal Reserve on May 22.</cite>

Among the more closely watched appointments, <cite index="12-14,12-15">venture capitalist Marc Andreessen was named to lead the group tasked with evaluating the Fed's approach to the job market and productivity.</cite> <cite index="17-15">Thomas Sargent, a pioneer of rational expectations, and Greg Mankiw were tapped to lead the Inflation Frameworks group.</cite>

<cite index="19-13">Other named leaders include Peter Fisher, a former executive vice president of the Federal Reserve Bank of New York and former undersecretary for domestic finance at the Treasury; Arminio Fraga, former president of the Central Bank of Brazil; and Mervyn King, former governor of the Bank of England from 2003 to 2013.</cite>

<cite index="5-21,5-22,5-23">The five task forces will examine areas central to the broad conduct of monetary policy. They will be co-led by external advisers with deep expertise in their fields and, supported by Federal Reserve staff, will operate independently, with a mandate to follow the evidence, provide candid feedback, and produce rigorous findings for the Federal Open Market Committee.</cite>

<cite index="12-12">The task forces are expected to recommend policy changes to the Fed by the end of the year,</cite> according to American Banker.

Warsh said in a statement accompanying the announcement that the review is driven by economic change. <cite index="16-10,16-11">"The U.S. economy has changed significantly over the last generation, and never more so than right now. Each task force will carefully consider whether policymakers' means and methods, analytical tools and policy approaches can be improved upon,"</cite> he said.

<cite index="14-13,14-14">The review represents a departure from previous Federal Reserve evaluations, which were largely conducted internally through committees of policymakers and Fed staff. By relying on independent outside experts, Warsh is seeking broader perspectives that extend beyond the institution's traditional policymaking framework.</cite>

<cite index="18-15,18-16">Historically, such internal reviews have preceded shifts in Fed policy. In 2020, a similar exercise led to the adoption of average inflation targeting.</cite> <cite index="18-17">The current review, however, is broader in scope and involves more outside input.</cite>

Some analysts have flagged potential friction points. <cite index="15-8,15-9">One commentator predicted the task forces could eventually recommend eliminating the dual mandate's maximum employment component, but noted that move would require congressional approval and faces uncertain political support.</cite>

The Fed did not announce a public hearing schedule for the task forces. Initial framing reports are expected in the fall.

Sources cited:
- Federal Reserve press release (https://www.federalreserve.gov/newsevents/pressreleases/monetary20260709a.htm)
- Reuters via Forth News (https://www.forth.news/articles/Ccs186VF2Z4FQx31FB6r6)
- American Banker (https://www.americanbanker.com/news/fed-announces-membership-of-monetary-policy-task-forces)
- Bloomberg (https://www.bloomberg.com/news/articles/2026-07-09/fed-s-warsh-names-leadership-for-five-new-task-forces)
- Scotsman Guide (https://www.scotsmanguide.com/news/federal-reserve-unveils-task-force-leaders/)
- HousingWire (https://www.housingwire.com/articles/fed-task-forces-monetary-policy-communications-balance-sheet-inflation-2026/)