Former Reserve Bank of India (RBI) Governor Raghuram Rajan has been appointed by the US Federal Reserve to a task force reviewing the central bank’s balance sheet policy as part of a broader effort to reshape monetary policymaking.
Rajan is among several global experts selected by newly appointed US Federal Reserve Chairman Kevin Warsh for five review groups examining key areas of the central bank’s operations.
The task forces will focus on communications, balance sheet policy, economic data, productivity and jobs, and the inflation framework.
Warsh said the initiative aims to bring new perspectives and ensure that the Federal Reserve is better prepared to achieve its objectives during a period of major economic changes.
Rajan’s Role in Fed Balance Sheet Review
Rajan will serve on the balance sheet policy task force along with Harvard economist Karen Dynan and former Federal Reserve Governor Jeremy Stein.
The panel will examine the costs, benefits and institutional implications of the Federal Reserve’s current balance sheet strategy, including its asset holdings and their role in implementing monetary policy.
The review comes after the US central bank expanded its balance sheet significantly during the pandemic and later began reducing its holdings as part of efforts to control inflation.
Global Experts Join Fed Reform Effort
The Federal Reserve has brought together prominent economists, business leaders and technology experts for the review process.
Indian-origin economist Raj Chetty, a Harvard University professor known for his research on economic mobility, inequality and labour markets, will co-lead the data task force.
Microsoft executive Asha Sharma will serve on the productivity and jobs task force, which will study the impact of emerging technologies, including artificial intelligence, on economic growth and employment.
Other members include former Bank of England Governor Mervyn King, Nobel laureate Thomas Sargent, former Walmart CEO Doug McMillon and venture capitalist Marc Andreessen.
Raghuram Rajan’s Global Economic Role
Rajan served as RBI Governor from 2013 to 2016 and is widely recognised for his work in financial stability and monetary policy.
Before heading India’s central bank, he served as chief economist and director of research at the International Monetary Fund. He continues to be an influential voice on global economic issues.
His appointment to the Federal Reserve review panel highlights his continued international role in shaping discussions on central banking, inflation management and financial stability.
The Fed’s review is expected to provide recommendations on improving monetary policy decisions and strengthening the institution’s response to future economic challenges.
