Fed Launches Reform: Walsh Plans Five Working Groups to Reshape Central Bank Framework

CoinFeed, June 18 – According to Jinshi, newly appointed Fed Chair Walsh announced at his first press conference in Washington the launch of reforms at the Federal Reserve, including the establishment of five new special working groups. Walsh stated: "I will set up working groups in five areas closely related to the execution of monetary policy—first, the Fed's communication mechanism; second, the Fed's balance sheet; third, the use and reliance on existing data sources; fourth, productivity and employment issues in a transitional era; and fifth, the Fed's inflation framework. These topics all have practical significance and important implications, and in my view, deserve a comprehensive re-examination." He expressed hope that most, if not all, working groups will complete their work by the end of this year. The relevant teams are still being formed, expected to launch in the coming weeks, and will begin providing preliminary analytical frameworks in the fall.