Federal Reserve Announces Staff Reduction Amid Broader Cost-Cutting Measures

Chair Jerome Powell revealed plans to reduce Federal Reserve staff by 10%, trimming its workforce from nearly 24,000 to under 22,000 employees. The cuts will be achieved through a voluntary deferred resignation program targeting retirement-eligible personnel by 2027.

Powell framed the MOVE as part of a periodic organizational review, citing historical precedents for such adjustments. Federal Reserve leadership has been directed to consolidate roles, streamline workflows, and maintain operational efficiency while fulfilling its statutory mandate.

The staffing reduction coincides with renewed White House pressure for federal agency austerity. The TRUMP administration’s cost-cutting initiative, reportedly championed by Elon Musk, signals broader fiscal tightening across government institutions.