BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
The U.S. Federal Reserve is set to implement major organizational changes within its supervision and regulation division under the leadership of Vice Chair for Supervision Michelle Bowman. According to an internal email sent Thursday, the Fed plans to reduce the division’s workforce by about 30%, primarily through attrition, retirements, and voluntary separation incentives. The move is part of a broader restructuring effort aimed at streamlining operations and improving regulatory efficiency.
Bloomberg News first reported on the planned cuts, later confirmed by Reuters. The reorganization aligns with the central bank’s earlier announcement of a larger workforce reduction of approximately 10% across its nationwide operations. This plan, backed by Fed Chair Jerome Powell, is intended to trim the institution’s roughly 24,000-person headcount and make its structure more efficient in line with President Donald Trump’s government-wide initiative to streamline federal agencies.
The restructuring also coincides with ongoing efforts to refine the Fed’s supervisory framework for large banks. Officials have signaled that the new structure aims to strengthen oversight while reducing bureaucratic inefficiencies within the central bank’s regulatory system.
Bowman, who has long emphasized accountability and transparency in financial supervision, is expected to lead the transition with minimal disruption to the Fed’s core responsibilities. The Fed’s leadership maintains that the reorganization will not compromise its oversight of the U.S. banking system but instead make it more adaptable and responsive to evolving financial risks.
This strategic shift highlights the Fed’s focus on modernization and fiscal responsibility amid changing economic conditions and increased scrutiny of regulatory performance. As the central bank moves forward with these cuts, analysts will be watching closely to assess their impact on supervision effectiveness and overall financial stability.
