Central Banks

Fed to Shrink Staff by About 10% Over Next Several Years

Fed Said to Cut About 10% of Workforce Over Next Several Years

The Federal Reserve plans to shrink its system-wide workforce by about 10% over the next couple of years, mainly through attrition.

Fed Chair Jerome Powell informed staff of the move on Friday in a memo viewed by Bloomberg News. The reduction includes offering some employees voluntary deferred resignation, which Powell said is similar to an effort the central bank undertook in 1997.