Fed Shakes Up Banking Oversight: Michelle Bowman Takes the Reins as Vice Chair for Supervision

Washington's favorite revolving door spins again—another regulator steps into the Fed's supervision hot seat. Michelle Bowman, a former community banker turned policymaker, now holds the keys to Wall Street's rulebook.

What's next? Tighter crypto scrutiny? Softer capital requirements? The usual bureaucratic guessing game begins—just don't expect any real surprises from an institution that still thinks 'blockchain' is a type of ergonomic chair.

One thing's certain: banks will keep lobbying, regulators will keep compromising, and the system stays rigged. Place your bets.

Trump presses Fed on rates as Michelle pushes deregulation

During testimony before Congress in April, Michelle told lawmakers that many of the current rules are “overly complicated and redundant.” She said those rules create avoidable expenses for both financial institutions and the customers they serve.

She promised to act as a “pragmatic” regulator, and analysts expect her to push for lighter leverage requirements, more transparency in bank stress testing, and easier capital rules for large firms.

While Michelle settles into her new role, Trump is increasing pressure on the Fed from the outside. On Wednesday, right after payroll firm ADP posted the lowest monthly private sector job growth numbers in years, Trump lashed out at Fed Chair Jerome Powell on Truth Social.

“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE,” Trump wrote. He added, “He is unbelievable!!!” and reminded followers that “Europe has lowered NINE TIMES!”

Tension between the WHITE House and the central bank has been rising for months. Trump met Jerome at the White House just last week to talk about the state of the economy. But based on official readouts, that meeting wasn’t exactly warm.

Karoline Leavitt, the White House press secretary, said Trump told Jerome that holding off on rate cuts is weakening America against countries like China. Jerome, on the other hand, reportedly told the president that decisions about monetary policy should be based on real economic data—not political pressure.

The fight didn’t end there. Since returning to the presidency, Trump has publicly ridiculed Jerome, calling him a “major loser” and giving him the nickname “Too Late.”

Despite legal boundaries, Trump has repeatedly hinted he’s exploring ways to remove Jerome from his post before the end of his term in May 2026.

All of this sets the stage for Michelle’s new position to carry even more weight. As the person now shaping banking oversight, her actions will likely align with Trump’s push for less interference in financial markets.

With rising political pressure and the economy front and center, her decisions are expected to directly affect how flexible, or how restrained, the Fed’s supervision becomes moving forward.

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