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Fed creates five task forces to review monetary policy operations
The new groups will report findings to the FOMC as the Fed reassesses areas including communications, balance-sheet policy, and its inflation framework.
The Federal Reserve announced five new task forces led by outside economists and business leaders to reassess how it conducts monetary policy, with the groups set to report their findings to the FOMC, HousingWire reports.
According to the Fed press release, the task forces will examine multiple parts of the policy process, including Fed communications, balance-sheet policy, data inputs, productivity and jobs analysis, and the central bank’s inflation frameworks.
The effort is intended to advance “the conduct of monetary policy” as structural changes in the U.S. economy and technology advances test older policy approaches, the report says.
Fed Chairman Kevin Warsh said in the statement accompanying the announcement that the Fed’s commitment to price stability and maximum employment remains “unwavering,” while framing the review as a way to ensure the central bank is best positioned to meet its objectives.