Federal Reserve Chair Kevin Warsh has assembled a team of prominent advisors, including former Bank of England Governor Mervyn King and cryptocurrency investor Marc Andreessen, to assist the U.S. central bank in its modernization efforts.

Warsh, who campaigned on reforming the existing system, announced the five working groups on Thursday, stating they will work to optimize the functions of the world's most critical financial institution.

Alongside Mervyn King and Marc Andreessen, co-founder of the Silicon Valley venture capital firm Andreessen Horowitz, the list includes former Reserve Bank of India Governor Raghuram Rajan and Nobel laureate economist Thomas Sargent.

Warsh stated on Thursday, "The U.S. economy has undergone significant changes over the past decades, and the current momentum for transformation is unprecedented. I am honored that top experts from various fields are willing to collaborate to enhance the Federal Reserve's overall performance."

Mervyn King led the Bank of England from 2003 to 2013, a tenure spanning the global financial crisis. Marc Andreessen is an ally of former President Donald Trump and a highly influential advocate in the digital currency space.

Kevin Warsh served as a Federal Reserve Governor from 2006 to 2011. After leaving the Fed, he frequently criticized its current policies before being nominated as Fed Chair by President Donald Trump.

Warsh plans to promote improvements in the Fed's communication with investors, reduce its massive $7 trillion balance sheet, and upgrade data collection methods while refreshing its approach to inflation analysis.

During a Senate Banking Committee hearing, he proposed that the Fed adopt a trimmed-mean inflation measure to calculate price levels, excluding extreme price movements of certain goods.

He also suggested that the U.S. is on the brink of a productivity surge driven by artificial intelligence, which could allow the Fed to stimulate credit through interest rate cuts without triggering inflation.

Many Fed policymakers disagree with this assessment, arguing that investments in data center construction and rising demand for AI-related products could instead push prices higher.

Federal Reserve staff will support the working groups. The five teams will develop reform plans for Warsh's tenure, focusing on policy communication, balance sheet management, data collection modernization, productivity research in the AI era, and the inflation analysis framework.

Former New York Fed official and current University of Washington researcher Peter Fisher, along with former Central Bank of Brazil Governor Arminio Fraga, will co-lead the policy communications group with Mervyn King.

Raghuram Rajan will co-chair the balance sheet task force with Harvard University professors Karen Dynan and Jeremy Stein.

The data group members include former Walmart CEO Doug McMillon, Harvard professor Raj Chetty, and University of Chicago scholar Kevin Murphy.

Marc Andreessen will oversee the productivity task force alongside Stanford University scholar Charles Jones and Microsoft executive Asha Sharma.

Harvard professor Gregory Mankiw and former Bank for International Settlements official Bill White will work with Thomas Sargent to review and revise the Fed's inflation analysis framework.

Krishna Guha, vice chairman of Evercore ISI, commented, "This is a very strong list of external experts. While many hold views that differ from the Fed's current mainstream thinking, all are professionally credible. Markets, current Fed decision-makers, and staff will take their advice seriously."

Warsh announced the formation of the working groups during his first press conference as Fed Chair and has requested that each team submit its findings and reform proposals to the interest-rate-setting Federal Open Market Committee by the end of this year.