US Fed Appoints Raghuram Rajan to Balance Sheet Task Force
UPSC / SSC current affairs note · Economy
Why in news
Former RBI Governor Raghuram Rajan has been appointed to a key Federal Reserve task force on balance sheet policy. This highlights India's global economic influence and Rajan's continued relevance in international monetary policy.
Background
The Federal Reserve's balance sheet expanded significantly after the 2008 financial crisis and again during the COVID-19 pandemic. The task force will review the current regime and its implications for monetary policy.
Key facts
Raghuram Rajan, former RBI Governor, appointed to US Federal Reserve's balance sheet policy task force.
Two other Indians also appointed to key Fed roles.
Task force will examine costs, benefits, and institutional implications of Fed's balance sheet regime.
Focus includes asset holdings and their role in implementing monetary policy.
Rajan is currently a professor at the University of Chicago Booth School of Business.
Prelims pointers
- Federal Reserve: Central bank of the United States.
- Balance sheet policy: Involves management of central bank assets and liabilities.
- Raghuram Rajan: 23rd Governor of RBI (2013-2016).
- Task force: Advisory body to the Federal Reserve.
Mains angles
- GS2: International Relations - India's soft power and global economic influence.
- GS3: Indian Economy - Role of former RBI officials in global monetary policy.
- GS3: Monetary Policy - Comparison of RBI and Fed balance sheet management.