President Donald Trump picked Federal Reserve Governor Michelle Bowman to function the central financial institution’s vice chair for supervision, a transfer cheered by Wall Road banks and smaller lenders who count on she’ll be friendlier to the business.
US Federal Reserve Governor Michelle Bowman attends a “Fed Listens” occasion on the Federal Reserve headquarters in Washington, DC, on October 4, 2019. US President Donald Trump on March 17, 2025 picked Michelle Bowman to be the Federal Reserve’s subsequent vice chair for supervision, tapping somebody seen as favoring a lighter contact to banking regulation.(Eric Baradat/AFP)
“Miki has been serving honorably on the Fed’s Board of Governors since 2018, and has great expertise dealing with Inflation, Regulation, and Banking,” Trump mentioned in a social media publish on Monday.
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Bloomberg beforehand reported that Trump was anticipated to quickly nominate Bowman for the function.
If confirmed by the US Senate, Bowman is predicted to help a lighter contact on financial institution regulation than her predecessor, Michael Barr. She has been a pointy critic of a landmark plan to require banks to carry extra capital unveiled in 2023.
Fed Chair Jerome Powell mentioned earlier this 12 months he’s optimistic an settlement on the long-awaited plan might be reached “fairly quickly.”
Bowman, a fifth-generation banker, beforehand served because the state financial institution commissioner of Kansas and was a vice chairman at Farmers & Drovers Financial institution. She grew to become a member of the Fed’s board in 2018 and chairs the central financial institution’s Subcommittee on Smaller Regional and Neighborhood Banking.
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In her function because the Fed’s high financial institution supervision official, she must navigate an govt order by Trump that curbs the facility of unbiased businesses. The order, issued in February, requires the Fed to submit draft laws associated to supervision for White Home overview and seek the advice of with the administration on priorities and plans. It exempted the central financial institution’s work on financial coverage.
Some large financial institution executives are desirous to see Bowman confirmed.
“The industry would be excited to see Miki Bowman appointed, and then that can help the banks move forward, to do what the bank should be doing, which is getting capital into the system and help supporting growth in the economy,” mentioned David Solomon, chief govt of Goldman Sachs Group Inc., in an interview with Fox Enterprise final week.
Aaron Klein of the Brookings Establishment mentioned that Trump’s choose is an “experienced insider” who helps the Fed with continuity.
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The transfer fills the publish vacated by Barr, who resigned from that job earlier this 12 months and averted a possible combat with Trump over the function. He stays a member of the Fed’s Board of Governors.
“It is a major change from Barr, but I don’t think she is an outlier from traditional Republicans we have seen at the Fed,” mentioned Ian Katz, a managing director at Capital Alpha Companions in Washington.