“我很高兴宣布米歇尔·‘米基’·鲍曼(Michelle ‘Miki’ Bowman)将担任美联储新任监管副主席。米基自2018年以来一直在美联储理事会出色履职，并在通胀、监管和银行业方面拥有丰富的专业知识。Analysis suggests that if the USA Senate confirms the nomination, Bowman's approach to banking regulation will be more lenient than that of her predecessor Barr, as she has long criticized the "Basel III endgame" rule that requires banks to Hold more capital. This rule was proposed by Barr and aims to reform the risk assessment methods of large banks, whereas Bowman believes that the capital burden on banks should be reduced.
On Monday, President Trump announced the nomination of Federal Reserve Governor Michelle 'Miki' Bowman to serve as Vice Chair for Supervision at the Federal Reserve, a decision welcomed by Wall Street Banks and small to medium-sized loan institutions, as Bowman is expected to adopt a more lenient stance on regulatory policy.
On Monday, Trump stated on Social Media:
I am pleased to announce that Michelle 'Miki' Bowman will serve as the new Vice Chair for Supervision at the Federal Reserve. Miki has been serving excellently on the Federal Reserve Board since 2018 and possesses extensive expertise in inflation, regulation, and the banking industry.
For the past four years, our economy has been poorly managed, and now is the time for change. Miki has the 'expertise' to accomplish this task. I am confident that under her leadership, we will achieve unprecedented economic peaks in our nation's history.
It is expected that regulations on Banks will be relaxed.
Earlier, there were media reports indicating that Trump is expected to formally nominate Bowman for the position in the near future. Former Vice Chair for Supervision Michael Barr resigned earlier to avoid a potential conflict with the Trump administration over the position but remains on the board.
In fact, Federal Reserve Chairman Powell is not very supportive of the position of Vice Chair for Supervision. At a congressional hearing in February, Powell stated that he believes the creation of the role of Vice Chair for Supervision has brought 'volatility' to the Federal Reserve. This position was introduced as part of regulatory reforms following the financial crisis of 2008.
Analysis suggests that if the USA Senate confirms the appointment, Bowman is expected to adopt a more lenient policy on bank regulation than her predecessor Barr, as she has long criticized the requirements for banks to Hold more capital under the "Basel III Endgame" rules. This rule, proposed by Barr, aims to reform the risk assessment methods of large banks, while Bowman believes that the capital burden on banks should be reduced.
Under Bowman's criticism, large banks actively lobbied to weaken the rule. Due to differing opinions among regulatory officials, the rule has not yet advanced.
Furthermore, Bowman suggested that the Federal Reserve should increase the transparency and predictability of the annual "large bank stress tests." The Federal Reserve recently announced plans for significant adjustments to the stress tests, while at the same time, large banks have filed lawsuits against this.
Coming from a banking family, Wall Street welcomes her.
The Bowman family has been involved in banking for five generations; she has served as Kansas State Bank Commissioner and as vice president of Farmers & Drovers Bank. She joined the Federal Reserve Board in 2018 during Trump's first term and chaired the Subcommittee on Smaller Regional and Community Banking.
As the highest bank regulatory official at the Federal Reserve, Bowman must deal with an executive order issued by Trump, which requires the Federal Reserve to submit drafts related to regulations for White House review and to consult with the government when setting priorities and plans. However, the order exempts the Federal Reserve's work in monetary policy.
Some senior executives from large banks express a welcome attitude towards Bowman's nomination.
David Solomon, CEO of Goldman Sachs, mentioned in a media interview last week:
The Banking Industry is excited about Bowman's appointment, which will help the industry move forward and focus on its core mission of injecting capital into the market and supporting economic growth.
Aaron Klein from the Brookings Institution stated that Bowman is an 'experienced insider' who will help the Federal Reserve maintain policy consistency.
Ian Katz, Managing Director at Capital Alpha Partners, stated:
This is a significant change, as compared to Barr, Bowman's policy stance leans more towards the Republican side. However, she does not belong to an extreme position but aligns with the Federal Reserve's consistent Republican tradition.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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