Trump Picks Michelle Bowman as Federal Reserve Vice Chair for Supervision

Last week, as many watchers had anticipated, President Trump announced the nomination of Federal Reserve Governor Michelle Bowman as the agency’s Vice Chair for supervision.

“Miki has been serving honorably on the Fed’s Board of Governors since 2018, and has great expertise dealing with Inflation, Regulation, and Banking,” said Trump in a social media post, according to Bloomberg Law. The vice chair of supervision post was previously occupied by Biden-administration pick Michael Barr, who stepped down in February.

Barr’s tough stance on banks was criticized by U.S. banks, and Bowman reportedly disagreed with Barr’s take on regulation. Bowman was previously a banking commissioner in Kansas, and was named to the Fed board during Trump’s first presidency.

At the American Bankers Association’s Conference for Community Bankers in Phoenix last month, Bowman said that the government’s regulatory framework for banks should promote safety and soundness, and it should not curb lenders’ operations, according to PYMNTS.

“Just as complacency can be fatal to the business of a bank, complacency can also prevent regulators from meeting their statutory obligation to promote a safe and sound banking system that enables banks to serve their customers effectively and efficiently,” she said.

She also stated that the bank application process may have placed obstacles to prevent new banks from forming, and that regulations on banks have become too 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.