Biden Picks Michael Barr to be Fed Vice Chair for Supervision
Last week, President Biden announced his intent to nominate Michael Barr as the next Federal Reserve Vice Chair for Supervision after his previous choice, Sarah Bloom Raskin, withdrew from consideration when it became evident that she did not have the votes for Senate confirmation.
“Michael brings the expertise and experience necessary for this important position at a critical time for our economy and families across the country,” Biden said in a statement released by the White House. “While I’m doing everything in my power to lower prices for families, the Federal Reserve plays a critical role in fighting inflation and Barr will make a strong Vice Chair for Supervision.”
After the nomination was announced, Senators Elizabeth Warren (D-Mass.), Chair of the House Financial Services Committee (HFSC) and Sherrod Brown (D-Ohio), Chair of the Senate Committee on Banking, Housing, and Urban Affairs, both indicated their support of Barr’s nomination to the Biden Administration.
“At a time when working families are dealing with rising prices while corporate profits continue to soar, this job is vital to ensuring the economy works for everyone,” Brown said in a statement. “Michael Barr understands the importance of this role at this critical time in our economic recovery.”
Brown also urged Republicans to avoid personal attacks on the nominee and to put Americans first in confirming Barr’s nomination. However, Senator Pat Toomey (R-Pa.), Ranking Member on the Banking Committee, expressed concerns over his nomination, criticizing Barr’s support for the Dodd-Frank Act’s bank bailout mechanism and his role in helping form the Consumer Financial Protection Bureau (CFPB), which Toomey called “unconstitutional and unaccountable.”
“During the Obama administration, Michael Barr was a key force in the creation of the Consumer Financial Protection Bureau, and I intend to support President Biden’s nominee for this important role at the Fed,” Warren said in a statement. “Moving forward, the Federal Reserve must rebuild public trust after the gravest ethics scandal in Fed history and safeguard our economy as families confront higher prices and corporate profits skyrocket.”
Previously, Barr served at the U.S. Treasury during the Obama Administration and the National Economic Council during the Clinton Administration. He was one of the main authors of the Dodd-Frank Act and he opened the Office of Community Development at the Treasury.
