President Donald Trump on Monday nominated Federal Reserve Governor Michelle Bowman as the central bank’s Vice Chair for Supervision, positioning her to oversee financial regulatory policies in a move that could lead to looser rules for major banks.
Bowman, first appointed to the Fed’s board by Trump in 2018, replaces Michael Barr, who stepped down from the role last month to avoid a legal battle after Trump threatened to remove him. Barr remains on the Fed’s seven-member board, forcing Trump to select from among the current governors.
Her nomination was welcomed by banking industry groups, including the American Bankers Association and the Independent Community Bankers of America. As Vice Chair for Supervision, Bowman will be the most influential federal bank regulator, coordinating with the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency on banking regulations.
Bowman has been a vocal critic of stricter banking regulations. She opposed a 2023 proposal by Barr that sought to require big banks, including JPMorgan Chase and Bank of America, to hold more capital reserves to cushion against potential losses. The proposal faced industry backlash, as well as opposition from nonprofit organizations concerned that it could curb mortgage lending. Bowman’s appointment requires Senate confirmation, but analysts expect her to be approved with little opposition. Before joining the Fed, Bowman was Kansas’ state bank commissioner from 2017 to 2018 and served as vice president at a local bank. She previously worked in Washington for Senator Bob Dole, a Kansas Republican, as well as in roles at the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security.
