Core Viewpoint - The Federal Reserve plans to reduce its supervision and regulation division staff by 30%, from 500 to 350 employees, as part of a broader effort to streamline operations and reduce complexity in the regulatory framework [1][2]. Group 1: Staff Reduction Details - The staff cuts were announced by Fed Vice Chair for Supervision Michelle Bowman during a meeting, with the intention to achieve these reductions through attrition, retirements, and voluntary separation incentives [2][3]. - The Federal Reserve aims to operate with fewer management layers and has plans to rename its operations unit to "business enablement group" while creating a new position focused on industry engagement [3]. Group 2: Regulatory Framework and Criticism - Bowman stated that the bank regulatory system has become overly complicated and has imposed unnecessary costs on banks and customers, indicating a need for balance between economic growth and regulatory safety [4][5]. - Senator Elizabeth Warren criticized the cuts, suggesting that the Federal Reserve is reverting to pre-2008 financial crisis practices by reducing its regulatory staff while accommodating the deregulation desires of large banks [4]. Group 3: Broader Workforce Reduction Plans - In a previous memo, Federal Reserve Chair Jerome Powell indicated plans to cut the overall workforce by about 10% over the next couple of years, which could amount to nearly 2,500 workers, bringing staffing levels close to a decade ago [5][6]. - Powell directed leadership to find ways to consolidate functions, modernize business practices, and ensure the organization is appropriately sized to meet its statutory mission [6].