WASHINGTON–Randal K. Quarles, the first and to date only vice chair of the Federal Reserve Board for Supervision, has announced he plans to retire.
In a letter to President Joe Biden, Quarles said after four years as a member of the central bank’s board, and ending his term last month as vice chair of supervision, it’s time to go.
“It has been a great privilege to work with my colleagues on the Board, throughout the Federal Reserve System, and among the global central banking and regulatory committee,” Quarles wrote.
Quarles’ resignation will leave two open seats on the Fed Board. To date, no successor has yet been named to fill Quarles’ supervisory role and the White House has made no nominations to fill the now-two open board seats.
Quarles continues to serve as chairman of the international Financial Stability Board (FSB), which works to coordinate financial stability regulatory programs across the globe. But that term also ends at year’s end.
Provoked Debate
During his tenure at the Fed Quarles has often provoked much debate and discussion. He has been a strong proponent for revisiting many of the regulatory provisions enacted after 2008-10 economic crisis, especially those rules aimed at improving “efficiency, transparency, and simplicity of regulation.” While some critics have argued his positions would weaken the banking system, Quarles has responded by saying his views do not affect the “core regulatory reform” made in response to the financial crisis, saying those reforms “produced a stronger and more resilient system and should be preserved.”
In addition, Quarles has strongly supported the transition away from the soon-to-be-defunct London Interbank Offered Rate (LIBOR) reference rate, and has been a critic of those calling for the Fed to consider adopting a “central bank digital currency” (CBDC), which he equated to 1980s-era “parachute pants.”
Diverse Career History
Prior to joining the Fed, Quarles, 64, was a former banker, Wall Street lawyer and Treasury Department official. He was appointed to the Fed by President Donald Trump in September 2017; he joined the board in October. His current term was to run until 2032. He has a long career in other government positions, as well.
Quarles was the first to assume the new position of vice chair for supervision at the Federal Reserve. Although the position was mandated by the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act, it had never been filled.