US Ropes In Ex-RBI Governor Raghuram Rajan For Key Federal Role
Rajan's first major challenge is expected to involve addressing interest rates that remain above the Federal Reserve's target
Washington: Former Reserve Bank of India governor Raghuram Rajan has been appointed to a key role in a new US Federal Reserve initiative, alongside two other Indian-origin experts, Raj Chetty and Asha Sharma.
Chetty is a Delhi-born American economist, while Sharma is a senior Microsoft executive. While the Federal Reserve has not yet disclosed the specific roles the three will take up, the move is meant to bring in fresh perspectives that could reshape monetary policy in the inflation burdened country.
New Federal Reserve Governor Kevin Warsh had announced the formation of five task forces as part of the initiative. Former Bank of England governor Mervyn King, former Walmart CEO Doug McMillon, Nobel laureate Thomas Sargent and Silicon Valley venture capitalist Marc Andreessen are also part of the task forces.
"I am honoured that the best minds from a range of disciplines have agreed to work with us to sharpen our performance as an institution. The goal is straightforward: to ensure the Fed is best positioned to achieve our objectives in this consequential time," Warsh said on Thursday.
Rajan's first major challenge is expected to involve addressing interest rates that remain above the Federal Reserve's target. According to a PTI report, his role is likely to include examining the central bank's balance sheet.
"I spoke to 15 people. I got different ideas from them, and I decided to move forward with them," Warsh was quoted as saying. He has not, however, disclosed further details about the initiative.
