According to reports from multiple media sources, informed individuals revealed that President Trump of the USA is expected to nominate Michelle Bowman as Vice Chair for Supervision at the Federal Reserve as early as Wednesday, March 12.

On February 28, Michael Barr, nominated by former President Biden, resigned from this position. Barr claimed that "the controversy surrounding this position may distract us from our focus on the task." However, Barr will remain on the Federal Reserve Board as a governor.

Given that Barr remains on the board, the seven-member Federal Reserve Board will not have any vacancies before 2026. This means that "selecting one current governor to serve as the new regulatory vice chairman" is Trump's simplest option; otherwise, a new vacancy will need to be awaited.

Currently, the seven governors of the Federal Reserve are Chairman Powell, Vice Chairman Jefferson, Barr, Bowman, Cook, Krugler, and Waller. Among them, only Bowman and Waller are officials who took office during Trump's first administration, and Powell's reappointment was nominated and appointed by the Biden administration.

It is worth noting that the "vice chairman in charge of regulatory affairs" is a relatively special position, established after the Global financial crisis, with a term of four years, aimed at strengthening the Federal Reserve's accountability, transparency, and oversight of the financial system.

So far, only two people—Randal Quarles and Barr—have held this position. Quarles left the board after his term as vice chairman ended in 2021.

Due to the differences between the Republicans and Democrats on the concept of Banks regulation, this position has also become partisan. According to media reports, for a long time, only Bowman and Waller opposed the "increased capital requirements for large Banks" in the Basel III agreement.

Previous media analyses indicated that the person most likely to be promoted by Trump is Bowman, who has consistently criticized Barr's policies. However, another approach is to offer Bowman a government position, thereby freeing up a position in the Federal Reserve Board.

Last month, Powell testified before Congress, stating that the volatility of Banks regulation policies was relatively low before establishing the deputy chair for supervision position. He said that the central bank would "continue to wait until there is a new deputy chair for supervision, so we can do the job well."

Editor/lambor