Fed Chair Kevin Warsh Appoints Xbox CEO to AI Task Force

Federal Reserve Chairman Kevin Warsh established an advisory network of business and economic leaders to refine policy frameworks and guide the Federal Open Market Committee. As part of this initiative, Warsh created the Productivity and Jobs task force to assess the economic impact of general-purpose technologies, specifically artificial intelligence, with recommendations due by the end of the year.

Warsh appointed Xbox CEO Asha Sharma as co-lead of the task force, making her the only sitting CEO among the five new external advisory groups. Sharma joins other members including Marc Andreessen, Charles I. Jones, Arminio Fraga, Mervyn King, Raghuram Rajan, and Raj Chetty. The task force is charged with evaluating how AI affects the workforce to inform future policy judgments.

Sharma's appointment has drawn public criticism due to its timing and her professional history. On July 6, 2026, Sharma announced 3,200 job cuts across Microsoft's gaming division, including ZeniMax Online, Id Software, and Bethesda, as part of a shift toward AI-driven development. This follows 8,000 company-wide Microsoft layoffs in May 2026. Bethesda head Jill Braff defended the cuts as a necessary shift to return to sustainable growth.

Critics have also highlighted Sharma's previous involvement in a $14 million Department of Justice settlement concerning discrimination against American workers during her time as a vice president at Facebook. Despite the backlash, Warsh emphasized that the task forces would consider if the Fed's analytical tools and policy approaches could be improved.