A group of 30 Republican lawmakers today urged Treasury Secretary Scott Bessent to quickly fill the role of vice chair for supervision on the Federal Reserve board with someone who will unwind “the politicized regulations promulgated by the board during the Biden administration.”
Fed Governor Michael Barr stepped down as vice chairman for supervision at the end of February, leaving the position vacant. The president must nominate someone to fill the role, who is then confirmed by the Senate. In a letter, Senate Banking Committee Chairman Tim Scott (S.C.), House Financial Services Committee Chairman French Hill (R-Ark.) and 28 lawmakers suggested filling the role with a “strong leader” who will reverse Biden-era regulation, ensure accountability at the Fed board and “right-size” the board’s regulatory and supervisory work.
The lawmakers alleged that “past gaps and poor leadership” within the vice chair for supervision position led to “disfunction” at the board and contributed to the 2023 failures of Silicon Valley Bank and two other large banks.
“Swift action to fill the role of vice chair for supervision is vital to our shared goals to foster a prosperous U.S. economy and engage in meaningful regulatory review,” they said.
Fed Governor Michelle Bowman has been floated as a potential candidate for vice chair for supervision, although the Trump administration has yet to indicate who it wants to fill the position. Also, in a hearing before the House Financial Services Committee in February, Fed Chairman Jerome Powell suggested the creation of the vice chair position in 2010 created more “volatility” on the Fed board by concentrating the job of crafting regulation in a board member.
