House Financial Services Committee Chairman French Hill and Senate Banking Committee Chairman Tim Scott have addressed a letter to Treasury Secretary Scott Bessent. The letter emphasizes the urgency of appointing a new Vice Chair for Supervision (VCS) for the Board of Governors of the Federal Reserve System.
The letter, signed by several Republican representatives and senators, highlights concerns over delays in major regulatory initiatives due to the vacancy. It stresses that "a strong leader" is needed in the role to manage tasks such as "unwinding politicized regulations," ensuring accountability, and adjusting the Board's regulatory work.
The departure of current VCS Michael Barr on February 28, 2025, has left a gap that lawmakers believe could stall significant projects like the Basel III Endgame reevaluation. The letter notes past leadership issues in this role have contributed to major bank failures in U.S. history.
The lawmakers urge swift action to fill this position to support economic prosperity and regulatory review goals. They express readiness to collaborate with Secretary Bessent and his appointee for necessary changes benefiting Americans.
Michael Barr's resignation was announced by the Federal Reserve Board on January 6, 2025.