WASHINGTON–Federal Reserve Vice Chair for Supervision Michelle Bowman has announced plans to reorganize the agency’s supervision and regulation division and cut the unit’s staff by about 30%, according to an email sent to staff last week.
The reduction will be through attrition, retirements and voluntary separation incentives, according to the email seen by Reuters. Bloomberg News first reported on the planned staffing cuts.
As the CU Daily previously reported, the Fed said earlier in the year that on a larger scale it plans to shrink its workforce by about 10% over the coming years, as part of the Trump administration’s efforts to shrink the federal government.
‘Incremental Reductions’
Powell had directed the Fed leadership to find “incremental” ways to trim operations, with a goal of shrinking the Fed’s roughly 24,000-person headcount nationwide, Reuters reported.
The move also comes as the Fed moves to adjust the U.S. central bank’s supervisory framework for large banks.
