Fed to Shrink Staff by About 10% Over the Next Couple of 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.

The Fed will offer the deferred resignation program to staff at the Washington-based Board of Governors who are fully eligible to retire as of Dec. 31, 2027.

“I have directed the leadership of the Federal Reserve, here at ...