The Trump administration on Monday nominated Fed Governor Michelle Bowman as the next Federal Reserve vice chair for Supervision. Her nomination is likely to proceed with speed and her confirmation is virtually assured. Governor Michael Barr vacated the spot for the vice chair for supervision as of February 28, 2025, although his term as government continues through January 31, 2032. He remains on the Board of Governors until then or until he resigns.
Vice chair for supervision is a four-year term. Assuming Bowman is confirmed soon, this would run through the spring of 2029. Her term as Governor does not end until January 31, 2034. The overlap means that there is no difficulty in her completing that four-year stint as vice chair for supervision.
While Bowman’s nomination does not change that all seven seats on the Board of Governors are currently filled, it does leave open the role of a governor dedicated to community banking as stipulated in the Dodd-Frank Act. Bowman is the only Fed governor ever to officially act in that capacity. It was eight years between Dodd Frank becoming law and Bowman’s nomination. During the gap, it is widely thought that former governor Daniel Tarullo filled that function. It is probable that Bown will continue to be the de facto governor for community banking since that is not the background of any of the other governors, although that could change if one of the governors made a commitment to the community banking sector. Otherwise, the designated seat for a community banker will have to wait until one of the other governors leaves the board.
The search for someone to fill the governor’s seat for a community banker was a long and difficult one, in part because of rules regarding financial disclosure and personal wealth that made it unappealing to many of the private sector. Those ethics rules have tightened in the intervening years since Bowman was appointed.
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