Lock the White House Watch Newsletter for free
Your Guide to Washington and the World’s 2024 US Election Means
Donald Trump has made Federal Reserve Governor Michelle Bowman the vice-chairman of the US Central Bank oversight, and White House officials said he has raised the champion of Right Touch Banking Regulations to the post.
Trump’s move is welcome on Wall Street. The best US financial institutions have been critical of the stricter approach to regulations taken for the oversight of Joe Biden’s appointee Michael Barr, who recently resigned from his job.
Bowman, who was elected to the Federal Reserve Committee by Trump during his first term, has been heavily involved in regulating community banks during his time at the central bank. Before the Fed, she served as a banking committee member in Kansas.
“We need to go back to a regulatory approach that emphasizes proper tailoring of regulatory requirements and supervisory expectations, and take a practical approach in identifying and remedying the most pressing issues,” she said at a conference held in Kansas last month.
“And we must encourage continued innovation in the banking and financial systems,” she added.
Prior to the announcement, Goldman Sachs CEO David Solomon supported her potential appointment.
“I think the industry is excited to see Miki Bowman appointed, and it helps banks move forward and helps them do what they need to do.
On monetary policy, Bowman is largely in line with the federal open market committee consensus under Federal Reserve Chair Jay Powell, but she opposed the central bank’s decision to cut 50 basis points last September. She would have preferred the 25 basis point cut.
