09:52 AM EDT, 10/31/2025 (MT Newswires) -- (Updates with Federal Reserve's response in fourth paragraph.)

The Federal Reserve plans to shrink its banking supervision division by about 30% by the end of next year, reducing staff to around 350 from 500, The Wall Street Journal reported Friday, citing an internal memo.

The report said the move, announced by Vice Chair Michelle Bowman, reflects her plan to streamline the division by reducing management layers and restructuring operations.

The changes also include renaming the operations unit as the "business enablement group" and creating a new role focused on industry engagement, it added.

The Federal Reserve board declined to comment when contacted by MT Newswires.

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