Federal Reserve Plans Workforce Reduction

Kudlow panelists David Bahnsen and Ej Antoni are currently discussing the potential removal of Jerome Powell, the chair of the Federal Reserve, from his position.

According to a memo obtained by Fox Business, the Federal Reserve is planning to reduce its workforce by 10% over the next few years. Powell informed central bank employees of this decision in a note sent on Friday morning, stating, “The experience here and elsewhere shows that it is sound to see every organization regularly take a fresh look at its staffing and resources.”

In his message, Powell emphasized the importance of modernizing business practices and integrating functions as needed to ensure the Fed operates at the proper scale while fulfilling legal requirements.

Interestingly, the reduction plan includes a voluntary resignation program for those interested in postponing their departure. However, sources indicate that attrition will primarily be used to achieve the staffing goals, as the central bank is also implementing hiring freezes.

Powell also expressed concerns about the economy facing “supply shocks” with greater frequency.

This is an ongoing story, so updates may follow.