Mohamed El-Erian Says Kevin Warsh Is Serious About Reforming the Fed

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Economist Mohamed El-Erian praised new Federal Reserve Chair Kevin Warsh's recent appointments, saying they show a serious commitment to reforming and strengthening the central bank. El-Erian wrote on X that the team's expertise and ability to build support for change could help restore the Fed's effectiveness, credibility, and political independence. Last week, Warsh formed an AI task force led by venture capitalist Marc Andreessen, with members including Stanford economist Charles I. Jones and Xbox CEO Asha Sharma of Microsoft Corp., and established four additional task forces covering communications, balance sheet policy, and data, with members including Walmart Inc. CEO Doug McMillon. 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. 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.

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