Washington (AFP) – US President Donald Trump on Monday picked Michelle Bowman to be the Federal Reserve’s next vice chair for supervision, tapping someone seen as favoring a lighter touch to banking regulation. The important central bank role requires confirmation by the Senate, which is controlled by Trump’s Republican party.
“I am pleased to announce that Michelle ‘Miki’ Bowman will be the Federal Reserve’s new Vice Chair of Supervision,” Trump wrote in a post to his Truth Social media site. “Our Economy has been mismanaged for the past four years, and it is time for a change,” he said, adding: “Miki has the ‘know-how’ to get it done.”
Bowman, a former community banker, was nominated by Trump to the Fed’s governing board in 2018. She has been a vocal critic of attempts by former vice chair Michael Barr to impose tougher banking regulation as part of an international response to the 2007-2009 global financial crisis. The Fed vice chair for supervision must be nominated from the ranks of the bank’s seven-strong Board of Governors, which currently includes just three Republican appointees: Fed chair Jerome Powell, Bowman, and governor Christopher Waller.
In a statement, Bowman said she was grateful for the “continued faith and confidence” Trump had placed in her “to fulfill this vital role.” “If confirmed, I will promote a safe and sound banking system through a pragmatic approach to supervision and regulation with a transparent and tailored bank regulatory framework that encourages innovation,” she added.
The American Bankers Association (ABA), which represents the interests of the US banking industry, voiced strong support for Trump’s decision. “We applaud President Trump’s nomination of Governor Michelle Bowman to serve as the Federal Reserve’s next vice chair for supervision, and we urge the Senate to quickly confirm her,” ABA President Rob Nichols said in a statement. “Since joining the Fed, Governor Bowman has been a thoughtful, principled voice for sensible regulatory and monetary policy and someone who understands the important role that banks of all sizes play in our financial system and our economy,” he added.
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