Federal Reserve Plans Workforce Reduction

In a move to streamline operations and modernize business practices, the Federal Reserve is set to reduce its workforce by 10% in the upcoming years. This strategic decision was disclosed by Fed Chair Jerome Powell in a memo obtained by CNBC.

Voluntary Resignation Program Unveiled

As part of the downsizing efforts, the Federal Reserve will offer a voluntary deferred resignation program to eligible employees nearing retirement by the end of 2027. This initiative aims to achieve the desired staff reduction while minimizing disruption.

Impact on Employment Numbers

Following the planned cuts, the total number of employees at the Fed is expected to fall below 22,000. This reduction aligns with the broader efforts of the new US administration to cut costs across civil service agencies.

Modernization and Efficiency

Powell emphasized the importance of consolidating functions and modernizing practices to ensure the Fed remains "right-sized" and capable of fulfilling its statutory mission effectively.