Trump Set to Swear In Kevin Warsh as Fed Chair Amid Staff Cuts Talk

TL;DR: President Trump will swear in Kevin Warsh as the new Federal Reserve chairman on Friday. Treasury Secretary Scott Bessent has labeled the Fed a management disaster and pointed to its 24,179‑person workforce as a target for trimming.

Context: The Federal Reserve System employed the equivalent of 24,179 full‑time workers in 2024, far more than peer institutions.

The Bank of Japan has about 4,600 employees, the European Central Bank over 5,000, and the Bank of England around 5,700 before recent layoffs.

Bessent said roughly half of the staff at each of the Fed’s 12 regional banks do not report to the bank’s president, calling the structure a management disaster.

The Fed’s payroll has risen steadily since the 2008 financial crisis, reflecting expanded supervisory duties and economic research teams.

Some analysts note that the central bank’s balance sheet operations also require sizable support staff.

Key Facts: First, the Fed’s 2024 payroll stands at 24,179 full‑time equivalents.

Second, Bessent told interviewers that the Fed is a management disaster, noting that about 50 % of regional‑bank employees lack a direct line to their president.

Third, Trump announced he will swear in Kevin Warsh as Fed chair on Friday, succeeding Jerome Powell.

What It Means: The incoming chair inherits pressure to examine staffing levels and reporting lines.

Critics argue a leaner Fed could improve efficiency, while defenders warn cuts might weaken supervision and research capacity.

Political donations show Fed employees lean heavily Democratic, adding a partisan layer to any restructuring debate.

Observers will watch whether Warsh orders a staff review, proposes specific headcount reductions, or maintains the current size.

Any reduction would need to balance cost savings with the risk of losing expertise in areas like bank supervision and economic modeling.

Congressional committees have signaled interest in oversight hearings on the Fed’s organizational structure.

What to watch next: Whether the new chair announces a concrete plan to trim the workforce and how Congress responds.