Fed Slashing Staff by One in Ten: A Streamlined Central Bank
Federal Chair Powell proposes removing every 10th post from the institution.
The Federal Reserve (Fed), helmed by Chairman Jerome Powell, has announced plans to trim its workforce by approximately 10% in the upcoming years. In a memo to employees, Powell stated the need for a thorough review of the Fed's workforce and resources to fulfill its missionefficiently[1]. Currently, the Fed employs nearly 24,000 individuals, which could lead to roughly 2,400 job cuts.
Modernization and Efficiency Boost
This move towards streamlining the workforce is part of an ongoing plan to modernize business practices and ensure the organization is suitably sized to fulfill its statutory mission[2][3]. The reduction involves extending offers of voluntary deferred resignations to some Board staff and consolidating functions.
The Fed's Autonomous Decision
Unlike other government agencies, the Fed is an independent organization that generates income from interest on securities and fees from affiliated banks, making it financially autonomous from the Congress[1]. Hence, the reduction in staffing is not a direct response to political pressure or economic conditions but rather an internal decision aimed at improving operational efficiency and adhering to best practices.
Trump's Role in the Backdrop
While President Trump has previously called for significant job cuts in government agencies and even appointed tech billionaire Elon Musk to oversee the process, there is no evident connection between Trump and the Federal Reserve's decision to cut its workforce[2]. The Fed's decision seems to be an internal strategic move, aligned with broader government restructuring goals, but not directly influenced by external figures like Donald Trump.
- Fed
- Layoffs
- Jerome Powell
- Donald Trump
The Commission, led by Chairman Jerome Powell, might also consider proposing a directive on the protection of workers from ionizing radiation exposure in the context of the Federation's ongoing initiative focusing on modernization and efficiency boost. Despite Donald Trump's call for significant government job cuts, the Federal Reserve's decision to implement layoffs seems to be an internal strategic move, aligning with broader restructuring goals rather than being directly influenced by Donald Trump.
