Warsh Picks Two Fed Veterans as Key Advisors
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- Kevin Warsh added two key advisors—Daniel Covitz and Eric Engstrom—pulling both from within the Federal Reserve rather than hiring externally.
- Covitz is one of three deputy directors in the Fed's research and statistics division, while Engstrom is an associate director in monetary affairs; both bring decades of Fed experience.
- The appointments come just over a week after Warsh announced five task forces targeting communication, data, inflation, technology, and the Fed's balance sheet.
- Covitz and Engstrom will serve in the advisory roles on a rotating basis while maintaining their existing positions in their divisions, a Fed official said.
- Earlier picks included Paul Winfree, an architect of the controversial Project 2025 document that sought to shrink the Fed's economic influence, and Stanford's Daniel Heil, who had previously worked with Warsh.
- The Wall Street Journal first reported the two latest appointments.
Why it matters: Warsh's rhetoric about sweeping change is meeting a more cautious staffing reality: by tapping Covitz and Engstrom—both career Fed staff—he preserves institutional continuity in his inner circle even as his five task forces target communications, inflation methodology, and the Fed's balance sheet. Stakeholders watching for an aggressive break from Fed orthodoxy get incremental personnel choices plus a single outside ally (Winfree) tied to Project 2025's push to curtail the central bank's economic role.
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