Trump to nominate Fed's Bowman as top bank regulator
Add Axios as your preferred source to
see more of our stories on Google.
Federal Reserve governor Michelle Bowman. Photo: Al Drago/Bloomberg via Getty Images
President Trump said he will nominate Federal Reserve governor Michelle Bowman to be the top financial regulator at the central bank, giving a promotion to a community banking expert he first appointed in his last term.
Why it matters: Bowman, who dissented from much of a Biden-era regulatory push, will have a broad portfolio overseeing financial stability if confirmed by the Senate to be vice-chair for supervision.
- "Our Economy has been mismanaged for the past four years, and it is time for a change. Miki has the "know-how" to get it done," Trump posted on Truth Social, using Bowman's nickname.
State of play: In overseeing banks and other financial firms that can create risks to the broader economy, she is likely to take a more restrained stance than her predecessor, Michael Barr, toward an industry that has complained of stifling over-regulation.
- She is part of the Fed's hawkish wing on monetary policy, and dissented from the central bank's super-sized interest rate cut in September (she preferred a smaller quarter-point rate cut).
What they're saying: "Often regulators take a 'more is better' approach to regulation and guidance," Bowman said in a speech last month.
- "Over the past several years, the banking industry has faced an onslaught of proposed and final regulations and guidance, materials that require a significant time commitment to review, to comment on, and to implement," she continued.
- "We must return to a regulatory approach that emphasizes appropriate tailoring of regulatory requirements and supervisory expectations and take a pragmatic approach in identifying and remediating the most pressing issues."
The intrigue: The elevation of a current Fed insider — Bowman has been on the seven-person board of governors since 2018 — solves a knotty problem for Trump. The vice-chair position is open, but there will be no governor vacancies until early next year.
- That's because Barr stepped down as vice-chair for supervision but did not resign from his governor slot, which extends to 2032.
- Earlier this month, Republicans on Capitol Hill urged the president to fill the vice-chair vacancy, with Bowman a logical solution.
Of note: Bowman speaks publicly more frequently than most of her colleagues; she gave 40 speeches last year, more than any other governor by a wide margin.
