Trump taps Michelle Bowman as Fed vice chair for supervision

In a widely expected move, President Donald Trump nominated Federal Reserve Governor Michelle Bowman to be the Fed’s next vice chair for supervision. The person holding that post is responsible for much of the country’s banking legislation. Bowman has taken a deregulatory stance in speeches and is likely to advocate for relaxing rules on banks. The New York Times has called her “arguably the most conservative member of the Fed Board.”

If Bowman is confirmed by the Senate, she’ll succeed Michael Barr, whom President Joe Biden made the Fed’s vice chair in 2022. Barr’s term as vice chair wasn’t set to expire until 2026, but he resigned the position this February to forestall a legal battle with the Trump administration.

Bowman formerly was the Kansas state banking commissioner and a vice president at community bank Farmers & Drovers. Trump nominated her to the Fed’s board in 2018, where she holds a seat earmarked for community bankers. She has been publicly critical of Barr’s approach towards legislation, and voted against the Basel III Endgame rule he designed, which would have required large banks to hold more capital in reserve.

Bowman has also argued that the Fed should make its annual “stress tests” for banks more “transparent and predictable for lenders,” Reuters wrote.

Some Republicans and banking leaders have voiced approval of Bowman’s nomination. Senate Banking Committee Chair Tim Scott (R-SC), said that Bowman would “push…back on burdensome rules,” Bloomberg reported. Rob Nichols, head of the American Bankers Association, called her “a thoughtful, principled voice for sensible regulatory and monetary policy,” per Reuters. Goldman Sachs CEO David Solomon said the banking industry “would be excited to see Miki Bowman appointed” and that her nomination would help banks to circulate more capital and support economic growth.