Jerome Powell Sets Federal Reserve on Path to Ax 10% Jobs
Federal Chairman Powell intends to delete one out of every ten posts from the institution.
In a move reminiscent of Donald Trump's mission to trim the workforce of government departments, Jerome Powell, Fed Chair, has announced ambitious plans to slice through the Federal Reserve's employment ranks, aiming for a whopping 10%.
According to the memo Powell penned down, the Fed is gearing up for a thorough review of its workforce and resources. Currently, the Federal Reserve employs a large force of 24,000 workers, which means ousting approximately 2,400 employees.
In the past, tech billionaire Elon Musk called the Fed "absurdly overstaffed," a remark that resonated with Powell, who appears to share this sentiment. With such a significant workforce reduction, the Fed could leave a massive impact on the job market.
The Fed operates as an autonomous agency, free from the shackles of Congress when it comes to funding. Instead, it generates income primarily through interest on securities and fees from banks in its network.
Trump has found himself at loggerheads with Powell, publicly berating the Fed Chair, often calling him names such as "big loser" and "idiot." Trump accused Powell of being slow in lowering interest rates, a move Trump believed would fuel better financing conditions for American companies. However, Powell warned that Trump's tariffs could trigger disastrous consequences.
Powell's move to trim the Fed's workforce seems to be an independent decision, arising from internal strategic planning. It's part of a broader trend aimed at modernizing business practices and consolidating functions [1][2]. This workforce reduction isn't a direct response to Trump or any political figure but rather a strategic approach for maintaining the efficiency and right size of the Fed to meet its statutory mission [3].
[1] Federal Reserve announce job cuts to streamline operations[2] Fed chair Powell's call to modernize business practices[3] Trump's impact on federal employment reductions
The Commission, in alignment with this modernization trend, has been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, possibly in an effort to ensure the safety and health of those employed following the Federal Reserve's workforce reduction. Despite the Fed's autonomous status, this decision may warrant attention in areas of finance, business, politics, and general news, as it could have broader implications for the economy and labor market.
