According to an informed source, Federal Reserve Chair Kevin Warsh has appointed two senior in-house economists to serve as his advisors.

The Deputy Director of the Fed's Division of Research and Statistics, Daniel Covitz, and the Assistant Director of the Division of Monetary Affairs, Eric Engstrom, will provide counsel to the new Fed Chair, Warsh.

Covitz's current research at the Federal Reserve includes asset bubbles and the stability of short-term credit markets. According to the Fed's website, Engstrom's work involves studying the co-movement of stocks and bonds, as well as corporate profits and entrepreneurial activity.

Warsh announced this month the formation of five working groups aimed at proposing changes to the Federal Reserve's operational methods.

These groups will address communication, the balance sheet, the Fed's "use of and reliance on existing data sources," productivity and employment, and the central bank's "inflation framework." Warsh stated last week that these panels will include external experts and will receive support from Federal Reserve staff.

Warsh has also hired conservative policy analysts Paul Winfree and Daniel Heil to serve as temporary advisors.