Prime Highlights:
President Donald Trump announced Michelle Bowman, a Federal Reserve Governor, as the new Vice Chair for Supervision at the Fed.
Bowman replaces Michael Barr, who resigned from the position but remains a Fed governor until 2026.
Key Background:
President Donald Trump announced on Monday the appointment of Federal Reserve Governor Michelle Bowman to the position of Vice Chair for Supervision at the U.S. central bank. This appointment follows the resignation of Michael Barr from the role, though Barr will continue to serve as a Fed governor until 2026.
Bowman, who has been with the Federal Reserve since 2018, replaces Barr after he stepped down, citing concerns that disputes over the role could distract from the Fed’s mission. In his resignation statement, Barr indicated that he believed his efforts would be more effective in his current capacity as governor.
Trump’s choice of Bowman, a former bank executive and state regulator in Kansas, is viewed as a signal of the administration’s preference for a more bank-friendly approach to regulation. As Vice Chair for Supervision, Bowman will oversee the central bank’s supervisory and regulatory activities. She is expected to adopt a lighter regulatory stance, particularly concerning smaller banks, reflecting her background and views on financial oversight.
In a statement shared on Truth Social, Trump expressed his confidence in Bowman’s ability to address key economic challenges. “Miki has the ‘know-how’ to get it done. I am confident we will achieve Economic heights never before seen in our Nation’s History,” Trump wrote.
The role of Vice Chair for Supervision was introduced after the 2008 financial crisis as part of regulatory reforms aimed at improving the stability of the financial system. However, the position has been a point of contention within the Fed. Chairman Jerome Powell has previously indicated that the creation of this position has led to increased volatility within the central bank. Bowman, who also participates in the Federal Open Market Committee (FOMC) that sets interest rates, is poised to play a key role in shaping future policy. The FOMC is expected to hold rates steady during its upcoming meeting this week.
