President Donald Trump has announced Federal Reserve Governor Michelle Bowman as his new vice chair for supervision, following the resignation of her predecessor Michael Barr. Bowman’s appointment brings a more banking-friendly approach to the top oversight role at the Fed.
Bowman, who joined the central bank during Trump’s first term, is expected to take a lighter approach to regulating small banks and has expertise in inflation, regulation, and banking. Her elevation gives Trump someone seen as favorable to the banking industry in the critical role.
The change comes after Powell expressed concerns about the creation of the vice chair for supervision, which he believed created “volatility” for the central bank. However, with the recent outperformance of bank stocks over broader market indices, expectations for lighter regulation on the sector are likely driving the shift.
Source: https://www.cnbc.com/2025/03/17/trump-picks-fed-governor-michelle-bowman-to-replace-michael-barr-as-feds-supervision-head.html