The US Federal Reserve will reduce the staff by 10% in the coming years, respecting the efficiency plans of the Trump administration
Federal Reserve US headquarters, photo: Kevin Dietsch / Getty Images / Profimedia Images
Federal of the US (FED) intends to reduce the number of employees by about 10% at national level, in the coming years, according to an internal memo sent by Fed President Jerome Powell, and consulted by Reuters.
According to the document, Powell asked the management of the Central Bank to identify “incremental” ways to reduce operations, with the objective of decreasing the current effective of about 24,000 employees throughout the country.
No forced redundancies are mentioned, but Fed will introduce a postponement voluntary resignation program, intended for Washington staff eligible for retirement until the end of 2027.
“It is healthy for any organization to re -evaluate their staff structure and resources. I think it is time to do this again, in the same conscientious and deliberate spirit,” wrote Powell, recalling that Fed has implemented similar discounts in the 90s, under the Clinton administration.
Powell stressed that any changes will comply with the legal mandate of the FED and will maintain a high standard of work, without political interference.
The decision comes in a broader context, in which President Donald Trump promotes the restructuring of the government, through a plan coordinated by Elon Musk, within the newly established Department for the efficiency of the Government (Doge).
Even though Fed manages its independent Congress and White House budget, Powell said the central bank must remain “a careful and responsible administrator of public resources.”
He added that Fed is used to initiating saving measures during periods when there are general efficiency government efforts, such as those in the 1990s.
