Fed's Bowman vows 'pragmatic' rulemaking as top bank regulator

Pete Schroeder

Thu, Apr 10, 2025, 8:16 AM 2 min read

By Pete Schroeder

WASHINGTON (Reuters) - Federal Reserve Governor Michelle Bowman told lawmakers connected Thursday that she would overhaul however the U.S. cardinal slope monitors ample banks, promote innovation, and prosecute "pragmatic" rules for the fiscal system.

Testifying earlier the U.S. Senate Banking Committee, Bowman said the existent regulatory strategy should beryllium streamlined. If confirmed to oversee slope regularisation astatine the Fed, Bowman said she would enactment to guarantee regulators prioritize simpler rules for smaller banks, and slope supervisors supply wide guidelines for the institutions they monitor.

"The U.S. regulatory model has grown expansively to go overly analyzable and redundant, with conflicting and overlapping requirements. This maturation has imposed unnecessary and important costs connected banks and their customers," she said successful her prepared testimony.

Bowman was nominated by President Donald Trump to instrumentality implicit arsenic the Fed's vice seat for supervision, its apical regulatory post. A erstwhile assemblage banker, she has served connected the Fed's Board of Governors since 2018.

She consistently criticized efforts by the Biden medication to enforce stricter rules connected the fiscal sector. Instead, she has called for a lighter interaction crossed a scope of regulatory tools deployed by the Fed, which is charged with monitoring immoderate of the country's largest lenders.

She received speedy enactment from Senator Tim Scott, the Republican chairing the panel, who said she would bring "accountability and transparency" to the cardinal bank. But Senator Elizabeth Warren, the panel's apical Democrat, criticized Bowman's telephone for little onerous rules and oversight, peculiarly aft a tumultuous week successful fiscal markets tied to Trump's import tariffs connected U.S. trading partners.

"President Trump is fanning the flames of catastrophe with his mismanagement of the nation's economy," Warren said. "Instead of showing up with the occurrence department, Governor Bowman brings a tin of gasoline."

(Reporting by Pete Schroeder; Editing by Paul Simao)