Noted economist Mohamed El-Erian has given a ringing endorsement to the new Federal Reserve Chair Kevin Warsh's recent appointments, saying they show a "serious" commitment to reforming and strengthening the central bank.
On Monday, El-Erian took to X to share his thoughts, arguing that the team's expertise and ability to build support for change could help restore the Fed's effectiveness, credibility, and political independence.
"...no doubt that its new Chair, Kevin Warsh, is serious about reforming, transforming, and enhancing the world's most powerful central bank," wrote El-Erian.
Last week, Warsh formed an AI task force to evaluate how artificial intelligence could reshape the U.S. economy and influence future monetary policy. The panel is led by venture capitalist Marc Andreessen and includes Stanford economist Charles I. Jones and Xbox CEO Asha Sharma of Microsoft Corp. (MSFT). The Fed also established four additional task forces covering communications, balance sheet policy, and data, with members including Walmart Inc. (WMT) CEO Doug McMillon.
In recent months, the Fed has faced mounting political pressure from President Donald Trump, who has repeatedly criticized its interest-rate decisions and called for more aggressive monetary easing. The public attacks have renewed concerns about preserving the central bank's independence from political influence.
El-Erian had earlier predicted that Warsh is driving a broader shift in global central banking, with policymakers beginning to move away from their long-standing reliance on traditional forward guidance. He attributed the change to Warsh's reform-oriented leadership and predicted that the current era of excessive data-dependent policymaking could also soon be re-evaluated, signaling a more flexible approach to monetary policy.






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