The US central bank is planning to reduce its number of employees in the coming years by about 10% in the coming years. This will lead to the efforts of President Donald Trump to streamline the Fed, the US government. This has been said by Federal Reserve Chairman Jerome Powell in a memo sent to employees on Friday.
According to reports by CNBC and Reuters, in the Internal Memo, Powell has said that he has directed the Fed Leadership to find the methods of cutting the operations, find some business practices modern and make sure the number of central bank employees is appropriate and the bank is able to meet the statutory missions. The goal is to cut the number of employees of the Fed up to about 10% over the next few years. The Fed currently has around 24,000 employees across the US.
Voluntary Deford Resigning Program will come for board staff
Fed has also planned to introduce a voluntary Deford Resignation Program for board employees in Washington. Board employees will be eligible to retire at the end of 2027. There is no mention of any involuntary trimming in the memo. Powell wrote in the memo, “The experience of here and other places shows that it is healthy to renew their employees and resources from time to time for any organization.” He said that Fed had earlier made similar changes in the 1990s, when President Bill Clinton tried to reduce the size of the Federal Government. Powell said, “I believe that the time has come to do it again with the same duty and thoughtfully.”
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Every change will give preference to the mandate and statutory obligations of the fed
In Memo, Powell did not give much detail about how Fed could improve his efforts, but insisted that every change would prefer Fede’s mandate and legal obligations, and will ensure that his work remains high quality, non-political and mission focus.
Trump has launched aggressive efforts to reduce the size of the US government and give a new form through the Department of Government Efficiency (DOGE) under the leadership of billionaire Elon Musk. Powell said that the budget of the Fed is not determined by the Congress and does not report directly to the White House. But the central bank should be a conscious and responsible protector of public resources.
