Jerome Powell Announces Major Downsizing at the Fed: 10% Job Cuts Coming
Federal Chairman Powell intends to erase every tenth post within the institution.
In a surprising move, Jerome Powell, Chairman of the Federal Reserve, has revealed plans to cut around 10% of the central bank's workforce. The decision comes after a memo he sent to staff stating that the Fed needs to "streamline" its operations by examining its workforce and resources.
The Fed currently employs around 24,000 people, meaning we might see approximately 2,400 job losses. To facilitate this transition, the Fed is reportedly offering incentives for voluntary departures.
Previously, tech billionaire Elon Musk had criticized the Fed, dubbing it "absurdly overstaffed." Despite originally being tasked by President Donald Trump to bring down government agency employment, Musk has diverted his focus to his companies, such as Tesla.
It's important to note that the Fed operates independently and isn't dependent on the US Congress for funding. Instead, it generates revenue through interest on securities and fees from affiliated banks.
US President Donald Trump has been vocal about curtailing numerous jobs in government agencies. However, there's no evidence that Trump or Musk played a part in the Fed's decision to trim its workforce.
Trump has publicly criticized Powell in the past, labeling him names like "big loser" and "idiot." Trump has also demanded lower interest rates from the Fed to boost US companies' financing conditions. But despite this, Powell has cautioned against the potential negative consequences of Trump's tariffs.
This is a significant move for the Fed, but it is part of a broader trend of government departments reevaluating their staffing levels to become more efficient and focused.
Related Terms:- Fed- Layoffs- Donald Trump- Jerome Powell
Enrichment Data:- The Fed's downsizing decision is primarily aimed at increasing efficiency and aligning resources with its goals, as stated by Chair Jerome Powell.- The plan involves a voluntary deferred resignation program, a hiring freeze, and the use of attrition to reduce staffing levels.- The decision to cut jobs is not directly linked to President Donald Trump or Elon Musk. The Fed operates independently and manages the nation's monetary policy.
The Commission, possibly in consideration of the Fed's decision to streamline its operations, might consider aligning its resources with a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, particularly in the context of business, politics, general-news, and finance. This reevaluation of staffing levels across government departments, including the Fed's and potentially others, could signify a broader trend toward improved efficiency and focus on specific objectives.
