Report: Fed Governor Michelle Bowman Likely Pick for Vice Chair for Bank Supervision

Federal Reserve Governor Michelle Bowman is reportedly the front-runner to become the next vice chair for bank supervision.

Bowman, who was appointed to her current role by President Donald Trump in 2018, is a top candidate for the bank supervision seat, The Wall Street Journal reported Tuesday (March 11), citing unnamed sources.

Trump told Fox News in an interview that was aired Sunday (March 9) that he had not yet picked anyone for the job but would do so “fairly soon,” according to the WSJ report.

The position was previously held by President Joe Biden’s appointee, Michael Barr, who gave up the seat in February to avoid a political and legal battle with Trump allies who wanted to remove him from the position, the report said. Barr remains a Fed governor until 2032.

The Federal Reserve said in a Jan. 6 press release that Barr would step down as its top banking regulator on Feb. 28. The announcement did not mention Trump by name, or speculation that Trump would try to remove Barr, but said “the risk of a dispute over the position could be a distraction from our mission.”

Bowman often opposed Barr’s aggressive regulatory agenda, Tuesday’s WSJ report said.

Issues that the Fed is likely to deal with soon include a revamp of the annual bank “stress tests” and another attempt to develop rules about the capital requirements for big banks, according to the report.

Bowman said in a Feb. 17 speech at an American Bankers Association event that the regulatory framework must promote safety and soundness in the banking system but should not prevent banks from providing innovative and competitive products and services.

She said supervisory ratings have led to a de-prioritization of core financial risks, the bank application process may have created impediments that led to a current lack of new bank formation, and that the body of regulations applied to banks has become overly burdensome.

“The banking system can be an engine of economic growth and opportunity, particularly when it is supported by a bank regulatory framework that is rational and well-maintained,” Bowman said. “The work of rationalizing and maintaining this system is an ongoing cycle.”