TechFlow news, June 29, according to The New York Times, shortly after Warsh took over as Federal Reserve Chair, he wrote to more than 20,000 employees of the central bank, outlining how he would lead the institution; he has long argued that the institution urgently needs thorough reform. In a letter dated June 2, Warsh promised to promote "an open and sober discussion regarding the Federal Reserve's strategy, policy, and operations."
The core of Warsh's strategy is a series of task forces, which focus on five areas he considers "key to the broad implementation of monetary policy." These areas include: the Federal Reserve's communication methods; its portfolio of government bonds and mortgage-backed securities (MBS) worth $6.7 trillion; its prioritized data sources; productivity trends and employment conditions; and models and metrics used to assess inflation.
According to people familiar with the matter, Warsh will announce more details about these task forces in the coming weeks. The goal is to complete the relevant work by the end of the year, after which policymakers will deliberate on what reforms should be implemented and specifically how to implement them. Each task force will be led by several outsiders personally selected by Warsh, and assisted by specific staff members selected from within the Federal Reserve.
