Trump nominates Federal Reserve Governor Bowman as vice chair for supervision

US President Donald Trump nominated Federal Reserve Governor Michelle Bowman to the central bank's top regulatory post as vice chair for supervision where she is expected to oversee an agenda of relaxed rule-writing and bank oversight.

A former community banker and frequent critic of overzealous bank regulation, Bowman would replace Michael Barr, who stepped down from the supervision post at the end of February to avert a potential legal dispute with the Trump administration.

"Our economy has been mismanaged for the past four years, and it is time for a change. Miki has the 'know-how' to get it done. I am confident we will achieve economic heights never before seen in our nation’s history," Trump, who took office on January 20, wrote on social media.

In a statement, Bowman thanked Trump for the nomination and said she would pursue "a pragmatic approach to supervision and regulation with a transparent and tailored bank regulatory framework that encourages innovation."

If confirmed, Bowman would be responsible for the Fed's extensive bank regulatory portfolio, including supervising and writing rules for many of the nation's largest banks.

Her nomination was quickly met with praise from the banking industry and congressional Republicans, who touted her efforts to resist tougher industry rules.

"Since joining the Fed, Governor Bowman has been a thoughtful, principled voice for sensible regulatory and monetary policy and someone who understands the important role that banks of all sizes play in our financial system and our economy," Rob Nichols, head of the American Bankers Association, said in a statement.

Bowman was widely seen as a frontrunner to fill the role, in part due to the fact that the Fed's board is currently full, meaning a replacement must be named from existing governors.

Despite little experience with global banks, Bowman would be one of the top bank regulators in the U.S. government and globally, as the Fed oversees the nation's largest and most complex lenders.

REUTERS