According to a Washington Post report, in spring 2025 twelve regional Federal Reserve presidents held a closed‑door session in Philadelphia to discuss trimming roughly 10% of the central bank’s staff amid the Trump administration’s downsizing plan. Several regional leaders warned that cutbacks could hinder operational capability, while others cautioned against jeopardizing independence and credibility.
Ultimately, the group endorsed a measured approach: top management partially yielded to some requests to ease political pressure, yet preserved discretion on critical policy decisions and avoided a direct confrontation.
In May 2025, Powell issued an internal memo announcing a multi‑year plan to reduce the workforce by about 10%, lowering headcount from roughly 24,000 to about 22,000 by 2027. Analysts say the policy backdrop can influence risk assets, including crypto markets, by shaping liquidity, inflation expectations, and investor appetite for digital assets.
Source: https://en.coinotag.com/breakingnews/federal-reserve-maintains-independence-amid-trump-pressure-as-powell-announces-10-workforce-cut-by-2027
