Consensus on Fed’s post-crisis reforms might be elusive

By  Kyle Campbell

There is a lack of consensus on the Federal Reserve Board about what bank regulation and supervision should look like after the recent string of regional-bank failures. Michael Barr, the Fed’s vice chair for supervision, laid out several changes he’d like to see in his report on the failure of Silicon Valley Bank last month. But remarks by Fed Gov. Michelle Bowman raised questions among policy analysts about how much of Barr’s post-crisis agenda will actually be adopted. Karen Petrou, managing partner at Federal Financial Analytics, said the language of Bowman’s speech indicates some fundamental disagreements within the Fed that could prove difficult to bridge. “[Fed Chair Jerome] Powell has essentially decided that he endorsed the Barr report and then you have Bowman saying only one board member saw it. Clearly, there seems to be some internal issues there in terms of transparency and collegiality,” Petrou said. “Whether those continue and then how they drive what the others do is much harder to predict because it’s not policy, it’s personal.”