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The Federal Reserve has said it will slash its workforce by 10 per cent in the coming years as it seeks to be a “responsible steward of public resources”.
In an internal email seen by the Financial Times, Fed chair Jay Powell said the US central bank would “offer a voluntary deferred resignation programme to board staff who are fully eligible to retire as of December 31, 2027”.
The voluntary resignation offer only applies to employees at the Washington-based board of governors, though the 10 per cent decrease will apply across the Federal Reserve system, which includes 12 regional banks.
Powell said the Fed, as “a careful and responsible steward of public resources”, needed to ensure its budgets were “mission-driven”.
“Experience here and elsewhere shows that it is healthy for any organisation to periodically take a fresh look at its staffing and resources,” Powell said, citing a similar drive in 1997. That year was also the last time there was a government-led effort to reduce federal staffing.
The Federal Reserve Board employs about 3,000 people, while the entire system has 24,000 employees.
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