Kevin Warsh taps veteran Fed economists as advisers amid five task forces

Daniel Covitz and Eric Engstrom will advise the new Federal Reserve chairman on a rotating basis as he moves in his first month to review communications, data, inflation, technology and the Fed’s balance sheet.

30d ago

Fact Check

The WSJ exclusive article directly confirms that Kevin Warsh appointed Daniel Covitz and Eric Engstrom as advisers, matching the claim's names, roles, and purpose (retooling the central bank's internal workings). The Reuters wire report independently picks up and reiterates the appointment. Both align on all key facts. The only caveat is that the original is a single-outlet exclusive citing unnamed sources, which Reuters had not independently confirmed at publication.

Summary

Kevin Warsh has added two longtime Federal Reserve economists, Daniel Covitz and Eric Engstrom, to advise him as he begins overhauling parts of the central bank’s internal operations in his first month as chair. Covitz, a deputy director in the research and statistics division, and Engstrom, an associate director in monetary affairs, will serve in the advisory roles on a rotating basis while keeping their existing jobs, according to a Fed official. Their appointments follow Warsh’s announcement of five task forces focused on communication, data, inflation, technology and the Fed’s balance sheet, part of a broader review of how the Fed evaluates the economy and conducts monetary policy.

Terms & Concepts

monetary policy: Actions a central bank takes to influence borrowing costs, money conditions and the broader economy.
Fed's balance sheet: The Federal Reserve's holdings of assets and liabilities, which can affect financial conditions and liquidity.
task forces: Working groups set up to review specific issues within the Federal Reserve’s operating framework.