FILE PHOTO: The U.S. Federal Reserve building in Washington, D.C.WASHINGTON - The U.S. Federal Reserve system is cutting about 300 people from its payroll this year, a small but rare reduction in headcount across an organization that has grown steadily since 2010 as its reach in the economy and regulatory agenda have expanded.
According to annual reports and financial documents prepared by the Fed each year, the number of staff budgeted for the system, including its regional banks, the Washington-based Board of Governors, and three smaller units, is due to fall by more than 500 positions from 2022 to 2023, from 24,428 to 23,895.
The size of any drop in actual employment won't be known until early next year when the Fed closes its books on 2023 and releases its latest annual report. In most years the Fed generates a profit that is turned over to the U.S. Treasury. But since the central bank began to increase interest rates to control a surge in inflation, it has been spending more than it earns each year, and in effect gives the Treasury an IOU to be paid later.