The Federal Reserve announced a suite of new task forces designed to “advance the conduct of monetary policy.” Among them, the Productivity and Jobs task force will examine the economic impact of emerging general‑purpose technologies—most notably artificial intelligence—to inform better policy decisions.

Why Asha Sharma Was Chosen

Xbox’s newly appointed CEO, Asha Sharma, brings a background in AI from her years at Microsoft. She will sit on the task force with billionaire venture capitalist Marc Andreessen and Stanford economics professor Charles I. Jones, who is currently on leave to serve as a scholar‑in‑residence at Anthropic. Fed Chairman Kevin Warsh said the groups reflect the Fed’s “commitment to price stability and maximum employment.”

Xbox’s Cost Crisis and Organizational Reset

When Sharma took the helm in February, she inherited a hardware component crisis. “The price we paid for console storage components was more than double what we paid last fall,” she told reporters. Those costs have since doubled again, and projections for the 2027 holiday season suggest a five‑fold increase over 2024 prices. Memory shortages have followed a similar trajectory, squeezing margins across the consumer‑electronics sector.

In response, Microsoft announced a “Xbox reset” that includes 1,600 layoffs—another 1,600 to follow—closure of five studios, and the cancellation of titles such as Avowed 2. Sharma warned that the Xbox business was “not healthy” and required a radical shift in hardware partnerships and business models.

AI Strategy Under New Leadership

Sharma, 37, has pledged to avoid “soulless AI slop” on the platform and has already scrapped several AI initiatives. Her inclusion on the Fed task force underscores the growing belief that AI’s macro‑economic effects—ranging from productivity gains to labor market disruptions—must be scrutinized by policymakers.

Implications for Policy and Industry

The Fed’s task forces will operate independently, aiming to “follow the evidence, provide candid feedback, and produce rigorous findings.” Beyond AI, other groups will focus on improving Fed communications, evaluating costs and benefits, enhancing the quality and timeliness of key economic data, and revisiting inflation tracking methods. By integrating industry insiders like Sharma, the Fed hopes to bridge the gap between cutting‑edge technology and macro‑policy, potentially reshaping how future regulations address AI‑driven productivity.