Federal Reserve Chair Jerome Powell laid out plans to trim the central bank's workforce by 10% across its system in the coming years, according to a message sent to Fed staff Friday obtained by Yahoo Finance.

In his message, Powell said he'd directed Fed leaders "to find incremental ways to consolidate functions where appropriate, modernize some business practices, and ensure that we are right-sized and able to meet our statutory mission."

he reduction in Fed staff will happen "over the next couple of years."

News of the Fed's plans was earlier reported by Bloomberg and the Financial Times.

As part of its program, the Fed will offer early retirement to eligible staff, matching a program the central bank undertook during the Clinton administration.

The Fed's plans to lean out its staff come as the Trump administration continues its broad push to streamline the federal government, most notably through the Department of Government Efficiency (DOGE) established by Tesla CEO Elon Musk.

The action announced by Powell, however, is not being directed by any other part of the government, according to a person familiar with the situation.

In his memo, Powell noted Fed staff levels have grown about 1% per year, on average, over the last decade.

As during his first term in office, President Trump has been a vocal critic of Powell, encouraging the Fed chair to cut interest rates as recently as last week after the central bank elected to keep its benchmark interest rate unchanged in a range of 4.25%-4.50%. Investors expect the Fed will cut rates twice this year, beginning in July.

Despite harsh barbs that have at times seen Trump label Powell a "fool" and a "major loser," the president has been clear that despite, in his view, having the authority to fire Powell, Trump has no plans to remove Powell from office.

Trump nominated Powell as Fed chair during his first term in office, and President Biden nominated Powell for a second term leading the central bank in 2021.

Powell's term as Fed chair is set to expire next May; his term on the Fed's Board of Governors runs through January 2028.