Fed Chairman Kevin Warsh Appoints Veteran Economists as Senior Advisers

On June 26, 2026, Fed Chair Kevin Warsh named two veteran Fed staff economists as advisers: Daniel Covitz, deputy director of Research and Statistics, and Eric Engstrom, associate director of Monetary Affairs. Both will rotate while keeping their division duties. The moves follow Warsh’s earlier hiring of external advisers Paul Winfree and Daniel Heil.

CNBCReuters

Warsh presented the hires as part of an operational revamp that includes five task forces—communication, data, inflation, technology, and balance-sheet. He has criticized forward guidance, especially the “dot plot,” as limiting policy flexibility.

CNBC

Covitz, a deputy director in Research and Statistics, has spent over 20 years studying asset bubbles and short-term credit-market stability. Engstrom, associate director of Monetary Affairs, recently analyzed the Summary of Economic Projections and Treasury-yield dynamics.

Reuters

Their co-authored paper, “Old risks reemerge in an era of Fed credibility,” finds investors worry about fiscal deficits and supply shocks, not far-ahead inflation risk, and notes the SEP now acts as an “anchor.” Covitz and Engstrom examined Treasury yields for 2024-2025, finding that yield spikes coincided with heightened fiscal-deficit concerns rather than changes in inflation expectations. Their analysis also quantified the SEP’s diminishing influence on market forecasts over time.

Reuters

At a post-FOMC press conference, Warsh said the Board must “reexamine how the Fed views each of the key metrics” and “deploy resources both inside and outside the institution.” A Fed official confirmed the rotating adviser arrangement.

CNBC

The hires signal Warsh’s intent to ground policy in internal expertise. Covitz’s credit-market focus and Engstrom’s SEP critique may reshape communication and data analysis, while moving away from rigid forward guidance could increase policy agility.

CNBC

The five task forces will issue interim findings within six months and final recommendations by end-2026. Warsh said the reports will guide revisions to communication protocols, data-collection methods, and balance-sheet management.

CNBC

• “Our results suggest a new(ish) era of risks for asset pricing, one in which two old risks — adverse supply shocks and fiscal unsustainability — have reemerged.” — Daniel Covitz and Eric Engstrom, co-authors

Reuters

• “We find no evidence that an increase in far-ahead inflation risk has played a role in the rise in far-forward rates,” — Daniel Covitz and Eric Engstrom

Reuters

• “anchor” — Eric Engstrom, describing the effect of the Summary of Economic Projections

Reuters