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Donald Trump has tapped Federal Reserve governor Michelle Bowman to be vice-chair for supervision at the US central bank, a White House official said, elevating a champion of light-touch banking regulation to the post.
Trump’s move will be welcomed on Wall Street. Top US financial institutions had been critical of the tougher approach to regulation taken by former vice-chair for supervision Michael Barr — a Joe Biden appointee who recently stepped down from the job.
Bowman, who was initially selected for the Fed board by Trump during his first term in office, has been heavily involved in the regulation of community banks during her time at the central bank. Before the Fed, she served as banking commissioner in Kansas.
“We must return to a regulatory approach that emphasises appropriate tailoring of regulatory requirements and supervisory expectations, and take a pragmatic approach in identifying and remediating the most pressing issues,” she told a conference in Kansas last month.
“And we must encourage ongoing innovation in the banking and financial systems,” she added.
Ahead of the announcement, David Solomon, chief executive of Goldman Sachs, cheered her possible appointment.
“I think the industry would be excited to see Miki Bowman appointed, and then that can help the banks move forward, to do what the bank should be doing, which is getting capital into the system and help supporting growth in the economy,” he told Fox Business on Wednesday.
On monetary policy, Bowman has mostly aligned with the consensus of the Federal Open Market Committee under Fed chair Jay Powell, though she did dissent from the central bank’s decision last September to cut interest rates by 50 basis points. She would have preferred a 25 basis point cut.
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