Credit: IANS
The United States (US’) top central bank, the Federal Reserve has selected the Bhopal-born ace economist cum former Reserve Bank of India (RBI) Governor Raghuram Rajan in its special team that will review the bank’s balance sheet, according to news agency, IANS.
The US Federal Reserve’s newly appointed chair, Kevin Warsh has also enlisted two other Indian-origin leaders to join its new economic reform panels.
The central bank’s leader, Kevin Warsh, created five special teams to update how the bank manages the economy. The main goal is to bring in fresh ideas to help the US economy flourish after years of high inflation.
The two other Indian-origin experts joining the reform teams are:
Raj Chetty: A well-known economist from Harvard University.
Asha Sharma: A top executive at Microsoft and the head of Xbox.
What the experts will do?
The teams will work independently to review the bank’s tools and strategies. The three experts will focus on different areas:
Raghuram Rajan: He will join the Balance Sheet Policy team. His group will look closely at the large amounts of funds and assets the bank holds, studying the costs and benefits of how this money is used. It is important to clarify that Rajan is not joining the Fed as a government employee or a policy-voting official. Instead, he is co-leading the Balance Sheet Policy task force.
Raj Chetty: He will co-lead the data team. He will focus on finding faster and more accurate ways to read real-world economic signals, helping the bank make better policy choices.
Asha Sharma (Technology and Jobs): She will join the Productivity and Jobs team. Her group will study how new technologies, like Artificial Intelligence (AI), are changing the workplace and affecting business growth.
Raghuram Rajan becomes 1st ex-RBI guv to join US Fed’s special team
Raghuram Rajan is the first former RBI Governor to be formally appointed to a high-level policy review panel by the US Federal Reserve. While Indian-origin economists have previously worked within the Federal Reserve system as researchers or regional advisers, an appointment of a former head of India’s central bank to an elite, independent task force tasked with restructuring U.S. monetary policy frameworks is entirely unprecedented.
