Thirty Republican lawmakers anxious to see the Federal Reserve roll back regulations implemented during the Biden administration urged U.S. Treasury Secretary Scott Bessent to act quickly in filling the role of vice chair of supervision (VCS) recently vacated by Michael Barr, who stepped down at the end of February.
The letter encouraged Bessent to work to fill the role with a “strong leader” committed to reversing Biden-era regulation, ensuring accountability at the Fed and right-sizing the board’s regulatory and supervisory work.
Specifically, the legislators stressed their concerns about a delay in tackling controversial rules, such as the Basel III Endgame proposal, given that the agency has committed not to undertake new rulemaking activities until the seat is filled.
“Past gaps and poor leadership within the VCS role on the board’s committee on supervision and regulation has led to disfunction at the board and contributed to the second-, third-, and fourth-largest bank failures in our nation’s history,” the lawmakers wrote. “Only a VCS empowered in that position can effect necessary changes at the board as quickly as is possible.
“Swift action to fill the role of vice chair for supervision is vital to our shared goals to foster a prosperous U.S. economy and engage in meaningful regulatory review.”
Fed Board members must be nominated by the president and confirmed by the Senate. Fed Gov. Michelle Bowman’s name has been floated as a possible candidate, although the Trump administration has not given an official indication regarding who is being considered.