{"id":9993,"date":"2025-05-17T02:52:44","date_gmt":"2025-05-17T06:52:44","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/05\/17\/federal-reserve-plans-to-cut-10-of-its-staff\/"},"modified":"2025-05-17T02:52:44","modified_gmt":"2025-05-17T06:52:44","slug":"federal-reserve-plans-to-cut-10-of-its-staff","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/05\/17\/federal-reserve-plans-to-cut-10-of-its-staff\/","title":{"rendered":"Federal Reserve Plans to Cut 10% of Its Staff"},"content":{"rendered":"
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The Federal Reserve will reduce its work force by 10 percent over the next several years to ensure the institution is \u201cright-sized and able\u201d to carry out its duties to foster a healthy economy.<\/p>\n

Jerome H. Powell, the chair of the central bank, announced the plan on Friday in an internal note to staff members reviewed by The New York Times. Certain employees will be eligible to participate in a voluntary deferred resignation program that is aimed at giving those close to retirement the option of an earlier exit. That offer will apply only to people at the Washington-based Board of Governors.<\/p>\n

Cuts are expected to be made across the entire Federal Reserve System, including the 12 regional banks. Roughly 2,400 people will be affected.<\/p>\n

\u201cI have directed the leadership of the Federal Reserve, here at the board and across the system, to find incremental ways to consolidate functions where appropriate, modernize some business practices and ensure that we are right-sized and able to meet our statutory mission,\u201d Mr. Powell said in the memo.<\/p>\n<\/div>\n<\/aside>\n<\/div>\n

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The Fed earlier imposed a hiring freeze on permanent workers as part of its efforts to align with the Trump administration\u2019s decree that no federal position vacant at the time could be filled or new positions created. It also took steps to distance itself from diversity issues as well as those related to climate change \u2014 initiatives that President Trump has opposed.<\/p>\n

The Fed is a politically independent institution, meaning it is not legally obligated to carry out orders by the executive branch. That buffer from the White House is being legally challenged by the Department of Justice, which has sought more sway over independent agencies.<\/p>\n

The announcement on Friday mirrors an effort by the Fed during the Clinton administration to cull its work force, which Mr. Powell cited in his note. At that time, there were \u201cgovernmentwide efforts to improve efficiency,\u201d as is the case \u201cnow,\u201d Mr. Powell said.<\/p>\n

Yet at a congressional hearing in February, Mr. Powell pushed back on the idea that the Fed had too many employees. \u201cOverworked, maybe, not overstaffed,\u201d he said.<\/p>\n

Mr. Trump is pursuing a similar goal, although much more aggressively than past administrations have. The newly formed Department of Government Efficiency, led by the billionaire entrepreneur Elon Musk, has taken to gutting the federal work force, including shuttering agencies wholesale. Tens of thousands of government employees have since left their jobs.<\/p>\n<\/div>\n<\/aside>\n<\/div>\n

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The Fed\u2019s decision is not tied to the ongoing initiative by DOGE, although some members of the central bank\u2019s staff were contacted this year via email by Mr. Musk\u2019s group, according to people familiar with the matter.<\/p>\n

\u201cThe Federal Reserve is a careful and responsible steward of public resources,\u201d Mr. Powell said in his note on Friday.<\/p>\n<\/div>\n<\/aside>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve will reduce its work force by 10 percent over the next several years to ensure the institution is \u201cright-sized and able\u201d to carry out its duties to foster a healthy economy. Jerome H. Powell, the chair of the central bank, announced the plan on Friday in an internal note to staff members […]<\/p>\n","protected":false},"author":1,"featured_media":9994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[19,21],"tags":[],"class_list":["post-9993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-market","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/9993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=9993"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/9993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/9994"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=9993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=9993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=9993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}