US Federal Reserve Taps Indian-Origin Experts For New Monetary Policy Reforms

The United States Federal Reserve has announced a major institutional reset, bringing in some of the world’s most influential Indian-origin experts to help reshape its monetary policy framework. Among the prominent names are former RBI Governor Raghuram Rajan, Harvard economist Raj Chetty, and Microsoft executive Asha Sharma, all of whom will serve on high-level task forces formed under newly appointed Fed Chairman Kevin Warsh.Raghuram Rajan has been appointed to the balance sheet policy task force, where he will help evaluate how the Fed manages its massive asset holdings and their impact on monetary policy. Known for his role in stabilizing India’s economy and his early warnings before the 2008 financial crisis, Rajan’s inclusion signals a strong focus on macroeconomic stability.Raj Chetty will co-lead the data task force, aiming to modernize how economic data is collected and used. His groundbreaking work using real-time, large-scale data to study inequality and mobility is expected to enhance the Fed’s decision-making precision.Meanwhile, Asha Sharma joins the productivity and jobs task force, bringing a technology perspective to analyze how artificial intelligence and digital transformation are reshaping employment and economic growth.This broader panel also includes global heavyweights like Mervyn King and Thomas Sargent. The initiative reflects the Fed’s push for transparency, innovation, and diverse thinking as it tackles persistent inflation, currently at 3.5%, and aims to bring it back to its 2% target.

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