It is reported that Trump plans to nominate Bowman as the Vice Chair for Supervision of the Federal Reserve to fill the vacancy left by Barr

According to informed sources, U.S. President Donald Trump is expected to nominate Federal Reserve Governor Michelle Bowman as the next Vice Chair for Supervision of the Federal Reserve as early as Wednesday. This move fills the vacancy left by Michael Barr, who was appointed by former President Joe Biden and resigned earlier this year to avoid a conflict with Trump over the position.

Barr indicated in January that he chose to resign from the top banking official position at the Federal Reserve to avoid potential conflicts. Although he believed he might win legally, he thought such a conflict would cause significant disruption to the Federal Reserve, making it an unwise course of action. Barr remains a member of the Federal Reserve Board.

Additionally, Bowman's nomination must be approved by the U.S. Senate. Since Barr did not resign from his board position, Trump must choose a replacement from the remaining board members or wait for a new vacancy to arise.

The White House did not immediately respond to requests for comments regarding the plan to replace Barr with Bowman.

Federal Reserve Chairman Jerome Powell revealed to lawmakers last month that the fluctuations in bank regulatory policy had been relatively minor before Congress established the Vice Chair for Supervision position. He emphasized that the Federal Reserve would "continue to fulfill its duties until a new Vice Chair for Supervision is in place to ensure we can complete our tasks smoothly."

In fact, earlier reports had indicated that Bowman was a strong candidate for the position. Trump nominated Bowman to the Federal Reserve Board in 2018. As a fifth-generation banker, she was serving as the Kansas Bank Commissioner at the time. Bowman was the first appointee to fill the community banking expert position on the board and frequently provided extensive insights on banking regulatory issues to community bank audiences.

Moreover, Bowman has strongly opposed Barr's bank capital proposal, which is part of the international agreement Basel III aimed at preventing future bank failures and financial crises. She believes that raising capital requirements while the banking industry is healthy could suppress lending activity and advocates for more effective regulation of banks.

Ian Katz, Managing Director at Capital Alpha Partners, noted in a report: "Bowman is the most obvious successor. She has been a strong opponent of Barr, not only criticizing the final version of Basel III but also questioning Barr's management of the process." Bowman has also criticized the Federal Reserve's handling of the bankruptcies of Silicon Valley Bank and others in 2023.

Although Bowman has focused on the banking industry in most of her public speeches, she has become one of the more hawkish monetary policymakers at the Federal Reserve, frequently expressing concerns about inflationary pressures. In September, she became the first board member in 19 years to vote against a policy decision by the Federal Open Market Committee, opposing a 50 basis point rate cut and advocating for a 25 basis point cut instead.

Earlier this week, Congressman French Hill stated in an interview: "Bowman has performed exceptionally well in her role as a Federal Reserve Governor." He believes that if Trump nominates Bowman for the Vice Chair for Supervision position, it would be a wise decision.

Bowman currently also serves as the Chair of the Federal Reserve's Small Regional and Community Banks Subcommittee and has previously held positions as Kansas Bank Commissioner and Vice President of Farmers & Drovers Bank in Kansas