Summary：**Raghuram Rajan, Karen Dynan to co‑lead Fed task force reviewing central bank’s $6.7 trillion balan
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**Raghuram Rajan, Karen Dynan to co‑lead Fed task force reviewing central bank’s $6.7 trillion balance sheet**
*Federal Reserve Chair Kevin Warsh announced five task forces to recommend operational changes, with prominent economists and business leaders tapped to guide the review.*
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### Introduction
The Federal Reserve unveiled a sweeping initiative on Monday aimed at modernizing its internal processes. Chair Kevin Warsh said five specialized task forces will examine everything from balance‑sheet management to the influence of artificial intelligence on productivity. The announcement comes as policymakers grapple with a $6.7 trillion balance sheet that has swollen since the pandemic‑era asset‑purchase programs.
### Key Developments
Two high‑profile academics will steer the task force dedicated to the balance sheet: former RBI governor Raghuram Rajan and Harvard economist Karen Dynan. Their group will assess the size, composition, and risk profile of the Fed’s holdings, recommending adjustments that could affect market liquidity and monetary‑policy transmission.
Other task forces will focus on:
* **Operational efficiency** – streamlining reporting and settlement procedures.
* **Artificial intelligence** – evaluating how machine‑learning tools can boost forecasting accuracy and staff productivity.
* **Data governance** – strengthening cybersecurity and data‑quality standards.
* **Community outreach** – improving communication with regional banks and the public.
Each panel includes a mix of central‑bank officials, private‑sector executives, and academic experts, ensuring a blend of practical experience and theoretical insight.
### Industry Analysis
Analysts say the balance‑sheet review could trigger a recalibration of the Fed’s asset‑allocation strategy. Rajan’s background in emerging‑market finance and Dynan’s
