Powell Says Fed’s Top Bank Cop Role Leads to More Volatility
Federal Reserve Chair Jerome Powell said Wednesday that bank regulatory policy was less volatile before Congress established the vice chair for supervision role, suggesting the Fed could do its job more effectively without it.
Vice Chair of Supervision Michael Barr, a Biden-era appointee, said he would step down as the Fed’s top banking cop on Feb. 28 or earlier if a successor is confirmed. He had last month cited “the risk of a dispute over the position.”
Powell told lawmakers at a House Financial Services Committee hearing the Fed will “continue on until there’s a new vice chair for supervision and we can very much get our work done.”
Barr plans to remain a Fed governor, so President Donald Trump would likely have to pick a nominee from the current slate of board officials since the next Fed vacancy isn’t expected until January 2026, although another board member could decide to step down before then.
Source : Bloomberg
