Former RBI Governor Raghuram Rajan Named to US Federal Reserve Task Force
Former Reserve Bank of India (RBI) Governor Raghuram Rajan has been named to a high-level task committee by the US Federal Reserve to examine its policy framework. New Fed Chairman Kevin Warsh announced the formation of five expert groups to review the central bank's monetary policy. Rajan will serve on the Balance Sheet Policy Task Force, alongside Harvard economist Karen Dynan and former Fed Governor Jeremy Stein, examining the size and composition of the Fed's asset holdings. Other Indian-origin appointees include Delhi-born economist Raj Chetty and Microsoft's Asha Sharma, on separate committees.
Key Facts & Details
7 points- 1Former RBI Governor Raghuram Rajan was named to a US Federal Reserve task committee.
- 2He will serve on the Balance Sheet Policy Task Force examining the Fed's asset holdings.
- 3New Fed Chairman Kevin Warsh formed five expert groups to review monetary policy.
- 4Other Indian-origin appointees include economist Raj Chetty and Microsoft's Asha Sharma.
- 5The panels also include Nobel laureate Thomas Sargent and former BoE Governor Mervyn King.
Deep Dive
- +The Fed's balance sheet had expanded to nearly USD 9 trillion during the Covid-19 pandemic.
- +The review assesses whether the Fed's current balance-sheet approach remains appropriate as it targets 2% inflation.
Exam Focus
Former RBI Governor Raghuram Rajan was appointed to which US Federal Reserve task force?
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Exam Relevance & Angle
Global appointments of prominent Indians are default-keep appointments items. Rajan's name, his former RBI role and the US Fed task force are strong testable hooks.
Target Exams
Background & Context
Raghuram Rajan served as the 23rd Governor of the RBI (2013-2016) and is a globally renowned economist and University of Chicago professor. The US Federal Reserve is the central bank of the United States; its balance sheet (asset holdings) is a key monetary-policy tool, having ballooned during pandemic-era asset purchases. Reviews of the Fed's policy framework shape the direction of US monetary policy, which has global spillover effects.
Test Yourself
1 / 2Former RBI Governor Raghuram Rajan was named to which US Federal Reserve task force?
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