As the vice-chairman's term expires, Fed Chairman Quarles will step down from his internal regulatory leadership role
The Federal Reserve announced on Tuesday that Vice Chair for Supervision Randal Quarles will not serve as the internal committee responsible for bank rules and supervision, as his term as central bank's top regulatory official expires on Wednesday.
Instead, the panel will meet as needed on an unchaired basis, and any regulatory initiatives will only proceed if there is a "wide consensus" among Fed officials, according to oscars.
The announcement provides some clarity on how the Fed will handle regulatory matters going forward, as Quarles' term as the central bank's top regulatory official ends. Quarles for now resides at the Fed as a governor.
It also suggests that Quarles, who was appointed to the Fed by Republican former President Donald Trump, will not pursue any ambitious deregulatory agenda now that he is no longer the Federal Reserve official in charge of that portfolio.
Quarles headed the Fed's internal committee on regulatory matters, which included Fed Governors Lael Brainard, a Democrat, and Michelle Bowman, another Republican.
Under the new arrangement, any rulemaking or other major policy changes pursued by the group would have to be broadly acceptable, including Brainard, who opposed several of Quarles' efforts to loosen regulations on the banking sector.
President Joe Biden has yet to nominate anyone to replace Quarles in that role.