(Reuters) -The U.S. Federal Reserve’s top bank cop, Michelle Bowman, announced plans to reorganize the agency’s supervision and regulation division and shrink the unit’s staff by roughly 30%, Bloomberg News reported on Thursday.
The reduction will be through attrition, retirements and voluntary separation incentives, Bowman said during a Thursday event, the report added, citing people familiar with the matter.
“She expects S&R to have a smaller overall footprint of roughly 350 employees – a reduction of approximately 30% from the previous authorized headcount of nearly 500 employees – by year-end 2026,” according to the report quoting a memo.
Reuters could not immediately verify the report.
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, bringing the U.S. central bank in line with President Donald Trump’s broader efforts to streamline the federal government.
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.
The move also comes as the Fed moves to adjust the U.S. central bank’s supervisory framework for large banks.
(Reporting by Angela Christy in Bengaluru; Editing by Leslie Adler and Maju Samuel)
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