US Fed plans to cut workforce by 10% in next 'couple of years'

US President Donald Trump has often criticized Federal Reserve Chair Jerome Powell, pictured, for not cutting involvement rates swiftly enough. Photo: Jim WATSON / AFP
Source: AFP

US Federal Reserve Chair Jerome Powell told unit connected Friday that the slope plans to chopped its workforce by astir 10 percent successful "the adjacent mates of years," according to a memo seen by AFP.

The bank's announcement follows US President Donald Trump's effort to dramatically trim headcount successful the federal government, a determination that has been spearheaded by the Elon Musk-run Department of Government Efficiency.

"The Fed is absurdly overstaffed," Musk wrote successful a societal media station earlier this year.

The Fed is an autarkic bureau which does not trust connected Congress for its funding, but alternatively makes money from involvement connected securities and fees charged to the banks it oversees.

"Experience present and elsewhere shows that it is steadfast for immoderate enactment to periodically instrumentality a caller look astatine its staffing and resources," Powell told unit successful the memo, archetypal reported by Bloomberg News.

The plans volition see a "voluntary" deferred resignation programme for eligible employees astatine the Federal Reserve Board successful Washington, helium said.

The Fed employed 23,950 people crossed the state successful 2023, according to its astir caller yearly report, including 3,000 employees astatine the Board, and implicit 20,000 unit astatine its 12 reserve banks dotted crossed the country.

Using that figure, a 10 percent chopped successful headcount would construe to a nonaccomplishment of conscionable nether 2,400 people.

Powell said helium has directed the enactment of the Fed "to find incremental ways to consolidate functions wherever appropriate, modernize immoderate business practices, and guarantee that we are right-sized and capable to conscionable our statutory mission."

The deferred resignation programme would "provide caller nonrecreational maturation opportunities for our unit and assistance america stay well-prepared to transportation retired our important responsibilities successful the years to come," helium added.

Source: AFP