The Associated Press WASHINGTON (AP) — Randal Quarles, who served in top U.S. Treasury Department positions under two Republican presidents, has been nominated by U.S. President Donald Trump to take a key position on the Federal Reserve board in charge of overseeing the banking system.
The selection, announced by the White House late Monday, marked Trump’s first effort to reshape the nation’s central bank, an institution he criticized during the campaign both for its low-interest rate policies, which he said were helping Democrats, and its action to implement the sweeping Dodd-Frank Act passed in response to the 2008 financial crisis.
Quarles, 59, was picked to serve as the Fed’s vice chairman for bank supervision. The position gives him a key role in the administration’s efforts to loosen the banking regulations imposed by the Dodd-Frank legislation Congress passed in 2010. The Dodd-Frank measure was aimed at cracking down on the risky bank practices that contributed to the 2008 financial crisis.
Quarles had been considered a front-runner for the job for months. The brief announcement gave no indication of when the administration might fill the other two vacancies on the seven-member Fed board, all of which will require Senate confirmation.
Quarles was nominated for a vacant Fed board term that expires on Jan. 31 and for an additional 14-year term that would expire on Jan. 31, 2032. He was also nominated for a four-term term as vice chairman for supervision.
Quarles currently heads the Cynosure Group, a Salt Lake City-based investment firm that he co-founded. Quarles was previously a partner in the Carlyle Group, one of the world’s largest private equity firms.
During the campaign, Trump promised to “dismantle” the Dodd-Frank law, which Republicans believe has hurt economic growth by imposing burdensome regulations that are discouraging banks from lending.
If confirmed by the Senate, Quarles will be in a key position to oversee any changes to banking regulations. Quarles is seen as a more moderate choice for the Fed post than some more ideological candidates that the Trump administration had considered.Speech