WASHINGTON — Federal Reserve Board Gov. Jerome Powell has been named head of the central bank’s supervisory committee following the retirement of Gov. Daniel Tarullo earlier this week.
Federal Reserve Chair Janet Yellen named Powell to head the committee in consultation with the other members of the board of governors, the usual process with committee assignments. Neither Yellen nor Powell made public statements about the selection.
Powell’s assumption of the chairmanship of the supervisory committee makes him, at least for now, the leading voice on regulatory matters at the Fed.
The Dodd-Frank Act created a new position, vice chair for supervision, which would be endowed with certain authorities and responsibilities for the Fed’s regulatory activities — including serving as chair of the supervisory committee.
While the position was created in 2010, the post remained vacant throughout President Barack Obama’s tenure. Tarullo, who retired Wednesday, had been named chair of the supervisory committee soon after his confirmation by the Senate in 2009 and effectively acted as the leading voice on regulatory matters at the Fed.
President Trump inherited two vacancies on the Fed board when he was elected in November, and has yet another with Tarullo’s departure. Trump has thus far not made any nominations to the Fed board.
Powell has served on the Fed Board since 2012 and was reappointed to a second term in 2014 that will expire in 2028. He has co-led a sweeping inquiry into the U.S. payment system with Kansas City Federal Reserve Bank President Esther George and has weighed in on matters related to financial stability and liquidity.
Before joining the Fed, Powell was a visiting scholar at the Bipartisan Policy Center, served as assistant secretary of the Treasury under President George H.W. Bush and worked in investment banking on Wall Street.