President Donald Trump is set to nominate Federal Reserve board member Michelle Bowman to the central bank’s top job overseeing banks, a White House official confirmed, paving the way for a more industry-friendly approach to financial regulation.
Industry-Friendly Approach to Financial Regulation
Bowman, a fifth-generation community banker initially nominated to the Fed by Trump during his first term, was previously Kansas state banking commissioner. During her tenure at the central bank, she has been deeply focused on regulatory issues relating to the country’s largest banks, which are all overseen by the Fed.
Challenges Ahead for Bowman
If confirmed, Bowman will still face a tough road in loosening some restrictions on the largest banks because the majority of the board was appointed by President Joe Biden, including Barr, who remains as one of the board’s seven current members.
Bowman’s Regulatory Stance
Last September, Bowman became the first board member in nearly 20 years to vote against one of the Fed’s interest rate decisions. She argued for a smaller rate cut, citing concerns about premature declarations of victory on price stability.
Bowman’s impending nomination was earlier reported by Bloomberg News.
At a hearing last month, Fed Chair Jerome Powell suggested he might prefer that the role not be filled at all, arguing that having a dedicated regulatory official can lead to greater “volatility” in the central bank’s approach to regulation. In the absence of a vice chair of supervision, Powell would de facto guide the central bank’s work overseeing banks.
Bowman has worked in a range of roles in Washington, including a stint as director of legislative affairs at the Federal Emergency Management Agency in the wake of the Sept. 11, 2001, terrorist attacks. When DHS was created, she was appointed deputy assistant secretary and policy adviser to then-Secretary Tom Ridge.
She also worked as an aide to former Sen. Bob Dole and counsel to the House Transportation and Infrastructure Committee and the House Oversight Committee.
