The President of the United States Donald Trump again sought to reduce the country’s central bank “earlier, rather than later”, and for the delay it extended to the chairman of the Federal Reserve Jerome Powell.
Donald Trump called him “too late Powell” and claimed that the reduction of rates was a “consensus of almost all”.
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What did Donald Trump said?
In his own social media, Truth Social wrote Donald Trump: “The consensus of almost all is that” Fed should reduce rates earlier than later. “Too late Powell, the man legendary for being too late to throw it back – but who knows ??
This comes after the last month when he spoke at a assembly in Michigan to mark 100 days in the office, Donald Trump criticized Jerome Powell for his decision and offered his own tariff policies.
“Inflation is basically down and interest rates have decreased, although I have a fed person who really doesn’t do a good job. You shouldn’t criticize the Fed. You should let him do your own thing – but I know much more than interest rates,” he said.
The ongoing attitude of Donald Trump against the attitude and pace of interest rates Jerome Powell is taking place, some speculating that the Fed boss can be an ax – something the US President denied.
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Fed to reduce staff by 10% in the coming years
In the next few years, the federal reserve system plans to reduce its system workforce by about 10%, especially through wear.
Fed chairman Jerome Powell informed employees about this move on Friday in a memorandum, which Bloomberg News was viewed. The reduction includes the offer of some employees of voluntary delayed resignation, which, according to Powell, is similar to the central bank in 1997.
The Fed will offer a postponed resignation program to employees on the Board of Directors who are fully eligible to retire to 31 December 2027.
“I ordered the management of the federal reserve system, here on the board and across the system to find incremental ways to consolidate functions where it is appropriate, to modernize some business practices and to ensure that we have the right size and able to fulfill our legal mission,” Powell said. “Over the next few years, our total level of staff will decrease by about 10%today.”
In its annual report 2023, the Fed announced 23,950 employees across the Fed system. The budget of 2024 predictions increases the number of employees to 24 553, approximately 2.5% increase.
A reduction in 10% suggests a reduction in the number of employees by almost 2,500 workers, with the level of staff to remain closer ten years ago.
The announcement comes when Trump’s administration is pushing federal agencies to reduce the number of employees and make operations more efficient.
The Fed is an independent agency that does not rely on the Congress for Financing. Nevertheless, the central bank was criticized by Elon Musk – who manages the Ministry of the Government of Administration or Doge – for what he claimed to be exaggerated and excessive costs associated with ongoing buildings.
Powell denied that the central bank is excessive. “Maybe overwhelmed, not exaggerated,” he said during the congress hearing in February. “Everyone in the Fed is working really hard.”
On Friday, Memo Powell said that the central bank “is a careful and responsible public resource administrator” and called the employees of the system “our most valuable asset”.
For years, the Fed’s income has exceeded its operating costs and has changed billions of dollars of profits to the US Ministry, which helped reduce the government’s budget deficit. However, as the interest rates increased, the opposite occurred: the Fed noted operating losses in 2023 and 2024, forcing it to give up the transfer to the Ministry of Finance.
Fed warned Musk’s attention, including the multi -year renovation of the seat. The reported costs associated with this have been approximately $ 2.5 billion since 2022, a number that the Fed has credited to the higher cost of building materials and work since the start of the project in 2021, as the inflation began to rise.
At the beginning of this month, Musk called these costs “Raiser eyebrows”.
In the report published at the beginning of this year Andrew Levin, Professor Dartmouth College and a former special advisor to the central bank, said the number of Fed employees has increased significantly since 2010. This contrasts sharply with other large federal agencies whose wages have fallen by 10%.
(With Bloomberg inputs)
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