Fed’s 24,179‑staff workforce draws Trump‑admin scrutiny as Bessent labels reserve banks a ‘management disaster’

The Fed employs more full‑time equivalent staff than the Bank of Japan (4,601), the European Central Bank (over 5,000), the Bank of England (5,700 before March 2026 layoffs), Germany’s Bundesbank (10,333) and the Reserve Bank of India (13,520). Its balance sheet stands at roughly $8.5 trillion, a scale that Bessent says the public underestimates. The incoming chair, Kevin Warsh, is expected to review the organization’s size and internal reporting lines.

- The Federal Reserve reported 24,179 full‑time equivalent employees in its 2024 annual report. - Bessent stated that roughly half of the employees at each regional bank do not report to that bank’s president. - In the 2024 election cycle, 90.3% of political donations made by Fed employees went to Democratic candidates.

A large, decentralized workforce can slow decision‑making and dilute accountability, especially when regional staff are not aligned with their bank presidents. Critics argue that reducing headcount could streamline supervision and monetary‑policy implementation, while supporters warn that cuts might weaken the Fed’s capacity to monitor financial markets. Market reaction has been modest: the dollar index (DXY) slipped 0.3% after Bessent’s remarks, and major bank stocks such as JPMorgan Chase (JPM) held steady near a $460 billion market cap, suggesting investors see the issue as a structural rather than immediate‑term concern.