Federal Reserve will scale back team of workers by means of 10% in coming years, Powell memo says

The Federal Reserve will glance to cut back its headcount by means of 10% over the following couple of years, together with providing deferred resignation to a couple older workers, central financial institution Chair Jerome Powell stated in a memo.

“Experience here and elsewhere shows that it is healthy for any organization to periodically take a fresh look at its staffing and resources. The Fed has done that from time to time as our work, priorities, or external environment have changed,” Powell stated within the memo received by means of CNBC.

The central financial institution leader added that he has suggested leaders all through the Fed “to find incremental ways to consolidate functions where appropriate, modernize some business practices, and ensure that we are right-sized and able to meet our statutory mission.” One manner for shrinking the team of workers will probably be to supply a voluntary deferred resignation program to workers of the Federal Reserve Board who can be absolutely eligible to retire on the finish of 2027.

The central financial institution stated in its 2023 annual document that it had just below 24,000 workers. A 10% aid would deliver that quantity underneath 22,000.

The memo comes because the Trump management has driven for value cuts throughout civil provider companies, spearheaded by means of Elon Musk and the so-called Department of Government Efficiency. Musk has prior to now referred to as the Fed “absurdly overstaffed.” Powell’s memo didn’t point out Musk or DOGE as an element within the resolution to shrink headcount.

The deliberate team of workers cuts had been first reported by means of Bloomberg News.

— CNBC’s Matt Cuddy contributed reporting.