The U.S. Senate officially confirmed Michelle Bowman as the Vice Chair for Supervision of the Federal Reserve Board on June 4, 2025. She will succeed Michael Barr, who resigned earlier this year, for a term of four years.
Bowman has been a Federal Reserve Governor since 2018 and is the first Governor to represent the interests of community banks. She previously served as the Kansas Bank Commissioner and held senior positions at the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security. Her regulatory philosophy emphasizes "tailored" regulatory measures, advocating for adjustments to regulatory requirements based on the size and risk profile of banks, and opposing one-size-fits-all capital requirements.
Her appointment has received widespread support from the financial industry. American Bankers Association (ABA) President Rob Nichols stated, "Governor Bowman’s commitment to regulatory work and her extensive experience in federal and state regulatory agencies, as well as community banks, give her deep insight into the real-world impact of banking regulation on the economy and consumers."
At the Senate confirmation hearing, Bowman pledged to work towards increasing transparency and accountability in regulation, emphasizing the need to develop policies in an open, prudent, and cautious manner. She stated, "If I am confirmed as Vice Chair for Supervision, I will be steadfastly committed to these values."
Bowman's appointment signifies a potential shift in the Federal Reserve’s regulatory policy from the stringent oversight of her predecessor Barr to a more lenient and flexible approach, particularly concerning capital requirements and bank innovation. Her regulatory philosophy may have a positive impact on small and medium-sized banks and fintech companies.