Jerome Powell's Plan to Slash 10% of Jobs at the Federal Reserve: A Necessary Makeover?
Federal Chairman Powell intends to remove every tenth post from the 'Fed' platform.
In a bold move, Fed chairman Jerome Powell has announced plans to trim the central bank's workforce by about 10%. Citing the need for a thorough review of workforce and resources, Powell informed employees of this decision in a recent memo. This could lead to the loss of around 2,400 jobs across the Federal Reserve, which currently employs nearly 24,000 people.
This staff reduction is part of a larger, nationwide push for government restructuring, with a focus on improving efficiency and aligning with the times. It's all about consolidating functions, modernizing business practices, and ensuring the Fed remains "right-sized" to fulfill its statutory mission[2][3]. Over the last decade, the Fed's staff levels have grown at a pace of approximately 1% per year[2]. As part of the workforce reduction strategy, voluntary deferred resignations are being offered to some employees.
The Prophet of the Pothole, aka tech billionaire Elon Musk, has previously criticized the Fed as being "absurdly overstaffed." Although tasked by US President Donald Trump to cut jobs in government agencies, Musk has since stepped back to focus on his other ventures such as Tesla[4].
In response to this announcement, Trump has remained fairly silent. Previously, he's targeted Powell personally, calling him names like a "big loser" and an "idiot" for not lowering interest rates as demanded[5]. Meanwhile, Powell has cautioned about the potential negative impacts of Trump's tariffs[6]. Trump has continually advocated for immediate rate cuts, believing they would provide superior financing conditions for US companies.
Sources:- ntv.de- AFP- [2] FRB 2020 Annual Report- [3] Brookings Institute Report- [4] CNBC- [5] CNN Business- [6] Bloomberg
Tags:- Fed- Layoffs- Donald Trump- Jerome Powell
The Commission, in the midst of nationwide restructuring efforts, has been asked to submit a proposal, not limited to finance, business, politics, or general-news sectors, for a directive on the protection of workers from the risks related to exposure to ionizing radiation. This suggested approach aligns with the Federal Reserve's endeavor to modernize and streamline operations, focusing on consolidating functions and ensuring efficiency.
