Federal Reserve to cut staff by 10% over several years

The Federal Reserve will reduce its workforce by 10% over the next several years to ensure the institution is "right-sized and able" to carry out its duties to foster a healthy economy.

- COLBY SMITH

Jerome Powell, the chair of the central bank, announced the plan Friday in an internal note to staff members reviewed by The New York Times. Certain employees will be eligible to participate in a voluntary deferred resignation scheme that is aimed at giving those close to retirement the option of an earlier exit. That offer will only apply to people at the Washington-based Board of Governors.

Cuts are expected to be made across the entire Federal Reserve System, including the 12 regional banks. Roughly 2,400 people will be affected.