Federal Reserve Chairman Kevin Warsh has unveiled a reform agenda, launching five task forces aimed at reshaping how the central bank operates. In his first press conference since taking office, Warsh said the groups will revisit the Fed’s core mandate of price stability and maximum employment.
The task forces will examine communications with markets, the Fed’s balance sheet, and whether its reliance on current economic data needs updating. Another group will study the impact of artificial intelligence and technologies on jobs and productivity, while the final group will reassess how the Fed measures and responds to inflation.
Warsh says the effort is about returning to first principles and improving transparency and effectiveness while keeping the 2% inflation target in place. Former Fed officials say the changes could significantly reshape how the central bank speaks, forecasts, and conducts monetary policy.
