Federal Reserve Governor Michelle Bowman has been confirmed as the new Vice Chairman for Supervision of the Fed, after a close 48-46 vote by the US Senate on Wednesday. The confirmation hands her control over how the central bank oversees and sets rules for the largest banks in the country.
This comes after President Donald Trump nominated her in March to fill the top regulatory role at the Fed, a decision meant to accelerate his push to scale back financial rules that he believes are slowing down economic growth. According to Reuters, Michelle, who’s served as a Fed governor since 2018 and previously worked as a community banker, is expected to drive changes that ease restrictions on big banks.
Her appointment is seen as a major step for the president’s broader plan to trim what he describes as unnecessary regulation. She will be in charge of supervision and rulemaking for the biggest and most complex institutions in the US financial system. During testimony before Congress in April, Michelle told lawmakers that many of the current rules are “overly complicated and redundant.”
Senate confirms Bowman amid her calls for deregulation
Bowman promised to act as a “pragmatic” regulator, and analysts expect her to push for lighter leverage requirements, more transparency in bank stress testing, and easier capital rules for large firms. While she settles into her new role, Trump is increasing pressure on the Fed from the outside.
On Wednesday, right after payroll firm ADP posted the lowest monthly private sector job growth numbers in years, Trump lashed out at Fed Chair Jerome Powell on Truth Social. “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE,” Trump wrote. He added, “He is unbelievable!!!” and reminded followers that “Europe has lowered NINE TIMES!”
Tension between the White House and the central bank has been on for months. Trump met Jerome at the White House just last week to talk about the state of the economy. But based on official readouts, that meeting wasn’t friendly. Karoline Leavitt, the White House press secretary, said Trump told Jerome that holding off on rate cuts is weakening America against countries like China.
Jerome, on the other hand, reportedly told the president that decisions about monetary policy should be based on real economic data—not political pressure. The fight didn’t end there. Since returning to the presidency, Trump has publicly ridiculed Jerome, calling him a “major loser” and giving him the nickname “Too Late.” Despite legal boundaries, Trump has repeatedly hinted he’s exploring ways to remove Jerome from his post before the end of his term in May 2026.
All of this sets the stage for Bowman’s new position to carry even more weight. As the person now shaping banking oversight, her actions will likely align with Trump’s push for less interference in financial markets. With rising political pressure and the economy front and center, her decisions are expected to directly affect how flexible, or how restrained, the Fed’s supervision becomes moving forward.
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