The Federal Reserve's most vocal opponent to Biden-era regulatory reforms is now poised to set the agency's oversight agenda.
President Donald Trump announced in a Truth Social post on Monday that he has selected Fed Gov. Michelle "Miki" Bowman to serve as the central bank's next vice chair for supervision.
"Miki has been serving honorably on the Fed's Board of Governors since 2018, and has great expertise dealing with Inflation, Regulation, and Banking," Trump said in the post. "Our Economy has been mismanaged for the past four years, and it is time for a change. Miki has the 'know-how' to get it done. I am confident we will achieve Economic heights never before seen in our Nation's History. Congratulations Miki!"
Bowman said in a statement Monday night that she is "grateful for the continued faith and confidence [Trump] has placed in me to fulfill this vital role" and that, if confirmed, she would "promote a safe and sound banking system through a pragmatic approach to supervision and regulation with a transparent and tailored bank regulatory framework that encourages innovation."
If confirmed by the Senate, Bowman would be responsible for overseeing the Fed's supervisory practices and bringing regulatory items before the full board of governors for approval. She would also be tasked with collaborating with the leaders of the Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency on joint initiatives, and she would join those agency heads in testifying before Congress at least twice a year.
Based on comments from Fed Chair Jerome Powell, the agency's top priorities will include
Bowman would also enter the office with her own priorities, which she has outlined comprehensively through speeches and other engagements. She has billed this approach as centering on "
Last month, she called for a
"With well over a decade of change in the banking system now behind us post-implementation, it is time to evaluate whether all these changes continue to be relevant," Bowman said. "Some of the regulations put in place immediately after that financial crisis resulted in pushing foundational banking activities out of the banking system into less regulated corners of the financial system. We need to ask whether this is appropriate."
Another top staple of Bowman's policy agenda is a greater emphasis on regulatory tailoring — ensuring that the onerous requirements intended for the nation's largest banks are not foisted upon smaller institutions.
In a
"Regulatory ambivalence to tailoring comes at a significant cost. If current trends continue … we will eventually find ourselves achieving the academically preferred end state of only a few large banks ineffectively serving the financial needs of the entire U.S. economy," she said. "In this state of the world, not only will community banks suffer but so will the communities they serve."
Bowman has also suggested rethinking the way regulatory tiers are defined and maintained, arguing that they should not be so rigidly tied to asset size. She noted that many banks retain simple, community banking business models but are elevated into higher oversight categories simply because their assets grow organically.
She has also emphasized the need to improve the Fed's
Thanks to her policy ethos and her prolific outreach efforts, Bowman has cultivated a strong following among bankers and state supervisors. This support culminated in bankers associations from all 50 states plus Puerto Rico calling on the administration to
"Since joining the Board of Governors, Governor Bowman has stood in the breach as a voice of reason and common sense, recognizing the criticality of strong prudential oversight while also understanding the necessity for supervisory balance and right-sizing of regulation for banks playing different roles in the economy," the state bank associations said in a letter to Treasury Secretary Scott Bessent.
Members of Congress and entities representing large bank interests have helped Bowman's cause indirectly by
In their own letter to Bessent, 30 members of the Senate Banking and House Financial Services committees urged the administration not to drag its feet on filling the position.
"We respectfully request that you fill the role of VCS with a strong leader as soon as possible to ensure that the important task of unwinding the politicized regulations promulgated by the board during the Biden administration, ensuring that there is accountability at the board and right-sizing the regulatory and supervisory work of the board are not delayed," they wrote.
Among the current board members, Bowman represented the most logical choice for supervisory vice chair. Along with her well-documented interest in the subject, she is also one of two remaining Fed appointments from Trump's first term. She was confirmed to the board in 2018 and reconfirmed the following year with bipartisan support.
Yet, some had made a case for leaving the vice chair for supervision role unfilled.
During congressional testimony last month, Powell suggested that the Fed would be better off without a designated regulatory official, noting that position has led to big swings in policy from one administration to the next. He said that the Fed did a fine job of regulation and supervision before the role was created in 2010. But he also committed to working with whomever the president picks for the job.
"The way we look at it is, we're going to do our jobs, and I think there are a number of things that can be done that will be very constructive," he said. "If there is a new vice chair of supervision, I will welcome that person and do everything I can to make them successful."
Bankers praised Trump for his selection of Bowman to be the Fed's top regulator. In a Monday afternoon statement, American Bankers Association President and CEO Rob Nichols said she is "a thoughtful, principled voice for sensible regulatory and monetary policy and someone who understands the important role that banks of all sizes play in our financial system and our economy.
"Her prior experience as a community banker and state regulator brings a much-needed real-world perspective to a wide range of policy issues facing our industry, including the need to ensure that all market participants have a level playing field," Nichols continued. "We look forward to working with Governor Bowman to ensure that the nation's banking regulatory framework is rational, forward-looking and appropriately tailored, so that all banks can continue to compete and succeed as they serve their customers and communities."
Senate Banking Committee Chair Tim Scott, R-S.C., said in a statement that he was "hopeful that Governor Bowman will help increase transparency around the regulatory and supervisory work of the Board" and praised the "unique skillset and perspective" that she would bring to the role of vice chair for supervision.
After Powell, Bowman is the second-longest tenured governor active on the Fed board. Before joining the central bank, she served as Kansas' state banking commissioner for nearly two years, and before that she was a vice president for her family's community bank, Farmers & Drovers Bank in Council Grove, Kansas.
Trump
While Bowman is a natural fit for bankers, it has been less clear how her worldview fits with that of the Trump administration, which,
But in recent remarks she has echoed sentiments from the administration, arguing for an end to policies that result in
"Bank regulatory policy should address the needs of the unbanked and expand the availability of banking services," she said in a recent speech. "It should not be used to limit or exclude access to banking services for legitimate customers and businesses in a way that is meant to further unrelated policy goals."
