Michael Barr Confirmed by Senate as Fed’s Vice Chair of Supervision

The U.S. Senate has voted to confirm Michael Barr as the vice chairman of supervision at the Federal Reserve, one of the most important financial regulatory roles in the country, amid rising interest rates and the worst inflation in four decades.

The Senate on Wednesday morning voted 66–28 to approve Barr, a former Obama administration official, as a member of the Federal Reserve’s Board of Governors.

Later in the day, the chamber separately voted 66–28 to confirm his four-year term as the Federal Reserve’s vice chairman of supervision—the point person related to bank regulation. More than a dozen Republicans joined Democrats in supporting Barr’s confirmation.

“Today’s confirmation of Michael Barr as Vice Chair for Supervision of the Federal Reserve is important progress for my plan to tackle inflation and for sound oversight as we transition to steady and stable growth,” President Joe Biden said in a statement on Wednesday.

The vote comes as inflation in the United States accelerated to 9.1 percent for the 12 months ending in June—the highest level in four decades—topping the market estimate of 8.8 percent and last month’s annual rate of 8.6 percent.

Responsibilities

Barr, who is currently listed as the dean of the University of Michigan’s Gerald R. Ford School of Public Policy, previously served in the Treasury Department during the Obama administrations.

Under President Barack Obama, he served as assistant secretary for financial institutions and was a chief negotiator during the drafting of the Dodd-Frank Act, a multi-pronged 2,300-page legislation Congress passed in 2010 that created the vice chair for supervision position.

The financial reform legislation sought to prevent another financial crisis like in 2008, in part by establishing a range of financial safeguards that prevents the kind of risk-taking that led to the crisis, and encouraging more bank regulation and supervision.

“The Vice Chairman for Supervision shall develop policy recommendations for the Board regarding supervision and regulation of depository institution holding companies and other financial

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