Besides interest rates, the Fed plans to reduce its workforce by 2,500.
The Federal Reserve (The Fed) plans to reduce its workforce across its organizational structure by up to 10%, or approximately 2,500 positions. This plan will be implemented over the next several years.
According to Federal Reserve Chair Jerome Powell, this move is aimed at consolidating related functions, modernizing business practices, and ensuring the appropriate staffing levels.
"Over the next several years, our overall staffing levels will decline by about 10% from today's levels.
This will allow us to identify ways to consolidate appropriate functions, modernize some business practices, and ensure we are the right size and able to effectively carry out our statutory mission," he wrote in a memo, as reported by Bloomberg.
It is understood that this measure will cut thousands of jobs across the Federal Reserve Board and the 12 regional reserve banks. In its 2023 annual report, the regulator had 23,950 employees throughout its system, which increased by 2.5%, or approximately 24,553 employees, in 2024.