Overview

• The Federal Reserve plans to cut its workforce by 10%, reducing its headcount from nearly 24,000 to under 22,000 by 2027.
• A voluntary deferred resignation program will be offered to eligible employees retiring at the end of 2027.
• Powell has directed Fed leadership to consolidate functions, modernize practices, and ensure alignment with the institution's statutory mission.
• The initiative is part of a broader effort to improve efficiency and aligns with federal cost-cutting priorities under the Trump administration.
• The Fed's independent budgeting authority remains intact, but external political pressures have influenced this recalibration.