The Federal Reserve is planning to reduce its staff count by 10% over the coming years, primarily through attrition, according to an internal memo from Chair Jerome Powell. The move aims to modernize operations and ensure the central bank’s ability to meet its statutory mission.
The reduction will affect both the Federal Reserve Board in Washington (3,000 employees) and the 12 reserve banks across the country (21,000 staff). Powell emphasized the need for a “careful and responsible steward of public resources,” highlighting the importance of reviewing staffing and resources periodically.
This move comes as the Fed seeks to align with government-wide policy shifts. Unlike other federal agencies, which have been subject to large-scale staffing reductions under the Trump administration, the Fed has its own budget and leadership structure that allows for more independence. However, Chair Powell acknowledged the need to adapt to changing environments and improve efficiency.
The 10% staff reduction will be achieved through a voluntary deferred resignation program for retirement-eligible employees, similar to one implemented by the Fed in 1997.
Source: https://www.axios.com/2025/05/16/federal-reserve-staff-cuts