U.S. Federal Reserve Chair Jerome Powell departs after holding a press convention following a two-day assembly of the Federal Open Market Committee on rate of interest coverage in Washington, D.C., U.S., Might 7, 2025.
Kevin Lamarque | Reuters
The Federal Reserve will look to scale back its headcount by 10% over the subsequent couple of years, together with providing deferred resignation to some older workers, central financial institution Chair Jerome Powell stated in a memo.
“Expertise right here and elsewhere reveals that it’s wholesome for any group to periodically take a recent take a look at its staffing and sources. The Fed has performed that every so often as our work, priorities, or exterior setting have modified,” Powell stated within the memo obtained by CNBC.
The central financial institution chief added that he has instructed leaders all through the Fed “to search out incremental methods to consolidate capabilities the place applicable, modernize some enterprise practices, and be sure that we’re right-sized and in a position to meet our statutory mission.” One technique for shrinking the employees shall 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 report that it had just below 24,000 workers. A ten% discount would carry that quantity under 22,000.
The memo comes because the Trump administration has pushed for price cuts throughout civil service companies, spearheaded by Elon Musk and the so-called Division of Authorities Effectivity. Musk has beforehand known as the Fed “absurdly overstaffed.” Powell’s memo didn’t point out Musk or DOGE as an element within the determination to shrink headcount.
The deliberate employees cuts had been first reported by Bloomberg Information.
— CNBC’s Matt Cuddy contributed reporting.