Fed Picks Rajan, Chetty, Sharma for Policy Task Forces

Federal Reserve Chairman Kevin Warsh has tapped former Reserve Bank of India governor Raghuram Rajan and Harvard University economist Raj Chetty to lead two of five task forces examining the central bank's monetary policy approach. Microsoft XBOX chief executive Asha Sharma will lead a third.

"The goal is straightforward: To ensure the Fed is best positioned to achieve our objectives in this consequential time," Warsh said in a statement Friday.

Rajan, a former RBI governor and University of Chicago finance professor, will co-lead the Balance Sheet Policy taskforce. The group will examine the costs and benefits of the Fed's current balance sheet regime and its institutional implications. Rajan warned global central bankers about subprime loan risks at a 2005 Fed retreat in Jackson Hole, a warning that preceded the 2008 financial crisis.

Chetty, a Harvard public economics professor and director of Opportunity Insights, will serve on the Liquidity Dependence panel. His co-chairs include Harvard economist Jeremy Stein, former Walmart president Doug McMillon, and University of Chicago economist Kevin Murphy.

Sharma, who runs Microsoft's gaming unit, will lead a task force on productivity and employment. The appointment comes days after Microsoft XBOX announced one of its largest layoffs in recent years. Sharma previously held roles at Meta, Coupang, Instacart, and Home Depot. Her panel co-chairs include Marc Andreessen, cofounder of Andreessen Horowitz, and Stanford University professor Charles Jones.

Microsoft, where Sharma runs the gaming unit, carries an Alpha Score of 57, labeled Moderate. Home Depot, a former employer, scores 46, labeled Mixed.