May 08, 2014

Boston Fed cutting staff 15%

May 9, 2014 – The Federal Reserve Bank of Boston reportedly plans to reduce staff by nearly 15 percent – by about 161 positions – over the next three to four years due to cost-cutting by Treasury, The Boston Globe reported.

In a May 6 article, the paper reported that Treasury is seeking to save $117 million over the next decade that that it's consolidating some banking services it utilizes, and which are currently spread out among 10 of the Fed's 12 regional banks, to do it. It says in future years, those services will be consolidated in four Fed banks in Kansas City, St. Louis, Cleveland and New York.

"The last time the Boston Fed shrunk in such a significant way was at the start of this century, when the central bank cut the number of offices that handled paper checks from 54 to one nationwide," the paper reported, quoting a Boston Fed spokesman. The Boston Federal Reserve Bank has 1,075 employees, the article notes.