{
    "success": true,
    "data": {
        "id": 1809448,
        "msgid": "the-fed-will-never-be-the-same-kevin-warsh-forms-5-special-task-forces-1781761897",
        "date": "2026-06-18 12:00:06",
        "title": "The Fed Will Never Be the Same! Kevin Warsh Forms 5 Special Task Forces",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "New Federal Reserve Chair Kevin Warsh has announced the formation of five internal task forces to overhaul the central bank's operations, signalling a significant shift in policy direction. The review will cover communication, the balance sheet, data usage, productivity and employment, and the inflation framework. Markets reacted cautiously as Warsh also hinted at a less communicative Fed and withheld his own economic projections.",
        "content": "<p>The United States central bank, the Federal Reserve (The Fed), made a\nfresh breakthrough in the Federal Open Market Committee (FOMC) meeting\nresults early Thursday morning Indonesia time (18\/6\/2026). In the\nmeeting, The Fed decided to hold its benchmark interest rate (Fed Fund\nRate) in the range of 3.50%-3.75%. This decision was in line with market\nexpectations that The Fed would not change its monetary policy at this\nmeeting. However, the market also reacted to a shift in The Fed\u2019s future\npolicy direction, especially as the likelihood of an interest rate hike\nin 2026 appeared to be growing. The latest projections from Fed\nofficials showed The Fed adopting a more cautious stance in addressing\nconsumer price inflation. Ultimately, hopes for further interest rate\ncuts in 2026 began to fade. This FOMC meeting was also the inaugural\nmeeting for Kevin Warsh as the new Fed Chair. In his first press\nconference, Warsh immediately signalled that he wanted to take The Fed\nin a different direction. Warsh stressed that The Fed must refocus on\nits primary task of maintaining price stability. He also conveyed his\nlong-held view that inflation is not something that can be left\nunchecked. The Fed must not be too lax in allowing prices to continue\nrising. Beyond interest rates, one important part of Warsh\u2019s press\nconference caught the market\u2019s attention. He announced the formation of\nseveral task forces to review The Fed\u2019s working methods. \u201cI am\nappointing a task force in each of five areas that are important parts\nof the broad implementation of monetary policy. They will begin work in\nthe coming weeks,\u201d Warsh said in his press conference, as quoted by\nReuters on Thursday (18\/6\/2026). Typically, a task force is a special\nworking team formed to discuss a specific issue in greater depth. This\nteam does not usually work like a permanent division. Task forces are\ncreated to examine specific problems, identify what needs improvement,\nand then provide recommendations to policymakers. The task forces formed\nby Kevin Warsh will serve as a tool to review several key areas within\nthe US central bank. The focus is not only on interest rates but also on\nhow The Fed understands the economy and communicates policy to the\npublic. Among the five task forces, the one closest to the market\u2019s\nattention is the communications task force. This is because financial\nmarkets are highly sensitive to every sentence that comes out of The\nFed. A single statement from the Fed Chair can cause the US dollar, US\ngovernment bond yields, stock exchanges, and emerging market currencies\nto move. Therefore, a change in The Fed\u2019s communication style could have\na major impact on global markets. Warsh himself signalled that The Fed\nunder his leadership might become more tight-lipped. He also chose not\nto submit his own economic projections in the Summary of Economic\nProjections (SEP), the document containing economic projections and the\ndot plot of Fed officials. This move means the market did not receive a\ndirect signal from the most influential official at The Fed regarding\nthe future direction of interest rates. Consequently, investors must\nread The Fed\u2019s policy direction more carefully. The other task forces\nare no less important, particularly the balance sheet task force, which\nwill re-examine how The Fed manages its large asset holdings. This is\ncrucial because The Fed\u2019s balance sheet affects banking liquidity, the\nbond market, and monetary policy operations. Meanwhile, the data task\nforce will assess whether The Fed is using sufficiently timely and\nrelevant data to read economic conditions. This is important because\ninflation, the labour market, and energy prices can change very rapidly.\nThe productivity and employment task force will examine the impact of\nnew technology, including AI. If technology boosts productivity, the\neconomy could grow faster without immediately triggering inflation.\nHowever, if technology disrupts the labour market, The Fed needs to\naccount for the risks. The inflation framework task force is the most\ncritical part of Warsh\u2019s agenda. From the outset, Warsh stressed that\nThe Fed must refocus on maintaining price stability. With this task\nforce, The Fed will review whether the old strategy is still effective\nenough to control inflation amid a constantly changing economy. These\ntask forces are not merely discussion forums. They are Warsh\u2019s way of\nbuilding change within The Fed gradually.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/the-fed-will-never-be-the-same-kevin-warsh-forms-5-special-task-forces-1781761897",
        "image": ""
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    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
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