Federal Reserve to Downsize Workforce Amid Government Streamlining
The Federal Reserve plans a 10% reduction in its workforce over the coming years. This move aligns with broader efforts to streamline the U.S. government, as announced by Fed Chairman Jerome Powell in a memo to staff, emphasizing a nonpolitical, mission-focused approach to ensure high-quality operations.
The Federal Reserve is set to reduce its workforce by approximately 10% over the next few years, in a move that coincides with President Donald Trump's initiative to streamline the federal government. This development was confirmed in a memo from Fed Chairman Jerome Powell, as viewed by Reuters.
Powell's internal communication to staff outlines the directive for Fed leadership to seek 'incremental' ways to reduce operations, aiming for a decrease of around 2,400 from its national headcount of 24,000. The plan includes a voluntary deferred resignation program for eligible board staff in Washington aiming for retirees by the end of 2027, with no involuntary layoffs mentioned.
Highlighting past organizational changes during President Bill Clinton's era, Powell underlined the importance of reassessing staffing levels carefully. While specifics about the revamp efforts were scarce, he stressed that any changes would align with the Fed's fundamental mandates and obligations while maintaining nonpolitical integrity as Trump aggressively moves to reformat the government.
(With inputs from agencies.)
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