Michelle Bowman Takes Key Fed Role as Trump Tightens Grip on Financial Regulation

Michelle Bowman has been confirmed by the U.S. Senate as the new Vice Chair for Supervision at the Federal Reserve, following a narrow 48–46 vote. Her confirmation marks another step in Donald Trump’s growing influence over U.S. financial policy, especially in his ongoing effort to roll back banking regulations he sees as stifling economic growth. Bowman will now oversee how the Fed supervises the largest U.S. banks and help shape rules for the country’s financial giants. Her appointment, originally proposed by Trump in March, aligns with a broader strategy to loosen financial oversight and promote pro-growth policies.

🔹 From Community Banker to Regulator-in-Chief Bowman is no newcomer to the Fed—she’s served as a governor since 2018 and previously worked in community banking. In her new role, she’s expected to advocate for lighter capital requirements, more flexible debt ratios, and simplified stress testing for large institutions. During her testimony before Congress, Bowman criticized existing regulations as overly complex and burdensome, both for banks and their customers. She promised to be a “pragmatic regulator”, focused on reducing red tape rather than expanding it.

🔹 Trump Intensifies Attacks on Powell As Bowman steps into her new post, Trump is ramping up pressure on Fed Chair Jerome Powell, whom he has long accused of dragging his feet on rate cuts. After weak private sector job data from ADP was released, Trump posted: “ADP NUMBER DROPPED!!! ‘Too Late’ Powell must CUT THE RATE. He’s incredible! Europe has cut NINE TIMES!” Trump was highlighting the contrast between Powell’s caution and the European Central Bank’s aggressive rate cuts, which many see as an effort to stimulate slowing growth.

🔹 Relations Between the Fed and White House Remain Strained Recent talks between Trump and Powell at the White House were reportedly tense. According to insiders, Trump accused Powell of weakening the U.S. economy by delaying action, especially compared to rivals like China. Powell allegedly pushed back, reiterating that monetary policy must be guided by real economic data—not political demands. Still, Trump has not relented in his criticism, often calling Powell a “major loser” and using the nickname “Too Late”. He has even suggested, despite legal constraints, that he may look for ways to remove Powell before his term ends in 2026.

🔹 Bowman Now Holds Strategic Influence in Trump’s Agenda As Vice Chair for Supervision, Bowman will be a central figure in the tug-of-war between Trump’s deregulatory ambitions and the Fed’s traditional independence. Her appointment signals a deliberate shift toward a lighter regulatory touch, with decisions that could reshape the landscape of U.S. banking—both behind the scenes and in the boardrooms of America’s largest financial institutions. Whether Bowman fully becomes the driving force of deregulation that Trump envisions remains to be seen. But one thing is clear: her role is no longer just technical—it’s now politically pivotal, at the heart of a high-stakes clash over the future of financial oversight in the United States.

#FederalReserve , #usa , #USPolitics , #JeromePowell , #Fed

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