From Wall Street to smaller banks, all have welcomed Donald Trump’s decision to tap Federal Reserve Governor Michelle Bowman as vice chair for supervision. If the Senate confirms Bowman to the post, she is likely to be more easygoing toward banks than her predecessor, Michael Barr. Trump made the announcement in a social media post, praising Bowman’s experience in inflation, regulation, and banking. Since 2018, she has been a member of the Fed’s Board of Governors and has served as chairman of the Subcommittee on Smaller Regional and Community Banking. As a Kansas state bank commissioner and a banker at Farmers & Drovers Bank, her experience makes her an advocate for community banks. Bowman has been critical of the 2023 proposal that would force banks to hold more capital. Jerome Powell, the Fed chair, has said discussions on the plan were underway, but Bowman’s leadership might change its course. He will have to steer through Trump’s executive order that restricts independent agency power. The order requires the Fed to submit its draft regulations on supervision to the White House for review, while excluding monetary policy. Bank executives are supportive of Bowman’s nomination. His optimism over her appointment was clear when Goldman Sachs CEO David Solomon said it would help in the growth of the economy by allowing capital to flow into the financial system. It is argued that her nomination is a move away from Barr but one that fits with traditional Republican policy at the Fed. Ian Katz of Capital Alpha Partners pointed out that although Bowman’s position is different, she agrees with the past conservative regulators. Earlier this year, Barr’s resignation made the way for Trump’s pick. With Bowman at the head of the Fed, the regulatory environment could move towards more industry-friendly policies and help to define the direction of financial supervision in the United States.
Trump Picks Michelle Bowman for Fed Role
