According to WSJ, Federal Reserve Chairman Kevin Warsh has appointed two senior economists who have long served at the Fed, Daniel Covitz and Eric Engstrom, as advisors. The two will assist in formulating monetary policy and conducting economic analysis. This is one of Warsh's first important personnel arrangements since taking office. Previously, he announced the establishment of five working groups to re-examine the Federal Reserve's communication methods, data analysis, and balance sheet management. Engstrom released a study last year stating that the US economy is facing an increasing risk of "mild stagflation"; In February of this year, the two also jointly studied and pointed out that the rise in long-term yields of US bonds is mainly driven by supply shock risk premiums and the expansion of fiscal deficits, rather than the market losing confidence in the Federal Reserve's ability to control inflation. https://(wublock123.com)/news/fed-chair-warsh-appoints-two-senior-economists-as-advisors-63540