Federal Reserve's Bold Overhaul: Streamlining Supervision

The U.S. Federal Reserve is set to reorganize its supervision and regulation division under the lead of Vice Chair Michelle Bowman, with a notable 30% reduction in staff. This decision was revealed in an internal email sent to staff, which outlined a strategic reduction through attrition, retirements, and voluntary separation incentives.

Earlier reports by Bloomberg highlighted the planned staffing cuts, consistent with the U.S. central bank's intention to shrink its workforce by about 10% in the coming years. This move is also in line with a broader government effort, initiated under President Donald Trump's administration, to streamline federal operations.

The Federal Reserve's Chairman, Jerome Powell, has directed the organization to find ways to make incremental cuts, aiming to reduce the nationwide headcount of approximately 24,000 employees. These changes come as the agency works to adjust its supervisory framework for monitoring large financial institutions.