U.S. President Donald Trump has appointed current Federal Reserve Governor Michelle Bowman to take over the central bank’s top supervisory role.
Governor Bowman got the promotion after previous Federal Reserve Vice Chair for Supervision Michael Barr resigned from the role, although he remains a governor of the central bank.
Bowman’s appointment is considered good news for U.S. banks such as JPMorgan Chase (JPM) and Goldman Sachs (GS).
Bowman, who is herself a former bank executive, is seen as friendly and supportive of the U.S. banking industry. She joined the central bank during Trump’s first term in office.
The duties of the vice chair for supervision include developing policy recommendations regarding supervision and regulation for the Federal Reserve’s board.
While the banks might be cheering Bowman’s appointment, Federal Reserve Chair Jerome Powell is not overly supportive of the supervisory role at the central bank.
During Congressional testimony in February, Powell said that he thought the vice chair for supervision had created “volatility” for the Federal Reserve.
The position of vice chair for supervision was created as part of regulatory reforms following the 2008 financial crisis.
As a Fed governor, Bowman is also part of the Federal Open Market Committee that sets the benchmark interest rate for the central bank.
The committee is set to meet over the next few days and announce its next move on interest rates March 19. Markets expect the central bank to hold U.S. interest rates at current levels.
