Fed Chopping Jobs: Is the Central Bank Following Elon Musk's Advice and Slashing Staff?
Fed's Chair Powell Proposes Deleting One in Ten Posts from the Organization
In a surprise move, Jerome Powell, the chair of the Federal Reserve (Fed), announced plans to ax around one in ten jobs. Detailing this in a memo to employees, Powell emphasized the necessity to streamline the central bank's workforce and resources, keeping its mandate on track.
Currently, the Fed employs close to 24,000, which means up to 2,400 employees could bid farewell to their jobs over the next few years. Is this move an answer to Elon Musk, the tech billionaire, who pronounced the Fed as an "absurdly overstaffed" entity?
While Musk has taken a backseat from the role of the fiscal hawk assigned by the US government, his initial statement still seems to have found an echo in Powell's decision. However, it's important to note that the Fed's workforce reduction isn't a direct response to political pressure - instead, it stems from internal organizational efficiency measures.
The Fed, being an independent agency, is largely self-funded, receiving income through interest on securities and fees from affiliated banks. The layoffs are not linked to monetary policy decisions like interest rate adjustments but are aimed at improving operational efficiency.
President Donald Trump has repeatedly criticized the Fed and its chair, Jerome Powell, for not conforming to his demands for lower interest rates. Despite these personal attacks, Powell continues to focus on maintaining economic stability, expressing concerns over the potential negative impact of Trump's tariffs on the economy.
Sources: ntv.de, rog/AFP
- Fed
- Job Cuts
- Elon Musk
- Donald Trump
The Fed's job cuts, which may affect up to 2,400 employees, are not a direct response to political pressure, but rather an internal measure for improving operational efficiency. Contrastingly, Elon Musk, the tech billionaire, has previously characterized the Fed as "absurdly overstaffed."
