Federal Reserve creates five policy working groups

The U.S. Federal Reserve announced the formation of five independent working groups aimed at strengthening the conduct of monetary policy and adapting to evolving economic conditions. The groups will focus on communication, balance‑sheet policy, data quality, productivity and employment, and inflation‑framework analysis.

Each group will be staffed by external experts, including former central‑bank leaders such as former Bank of England governor Mervyn King and former Brazil central‑bank chief Arminio Fraga; prominent academics like Greg Mankiw, Thomas Sargent and Harvard economists; and industry figures such as Andreessen Horowitz co‑founder Marc Andreessen and Microsoft Xbox executive Asha Sharma. The panels will operate independently of Fed staff, produce recommendations for the Federal Open Market Committee, and assess issues such as the economic impact of artificial intelligence.

Fed President Kevin Warsh emphasized that the initiative is intended to ensure the Fed’s tools and methods remain effective in achieving price stability and maximum employment.