Fed governor Randall Quarles, who was previously responsible for financial supervision, will leave the U.S. Central Bank next month, creating another vacancy for the Biden administration to fill the agency’s leadership uncertainty.
Quarles said on Monday that he will step down from the board of directors of the Federal Reserve that has served since 2017. His position as vice chairman of supervision ended in October, about four years after Donald Trump appointed him to the position. However, his role as president will enable him to serve in the central bank until 2032.
“After serving as a member of the Federal Reserve System for more than four years, given that I completed my tenure as Vice Chairman of the Oversight Committee last month, I plan to resign as a member of the Federal Reserve Board of Governors. Bookings will be made on or around the last week of December this year. ,” Quarles said in his resignation letter to U.S. President Joe Biden on Monday.
Quarles, whose position as chairman of the International Institution’s Financial Stability Board will expire in early December, left the central bank when it is unclear who will become the central bank’s top position next year.
The Biden administration is currently debating whether to appoint the current chairman Jay Powell for another four years before he expires in early February.
The president must also decide to replace Richard Clarida, the vice chairman, whose term as governor will end in January. Biden also inherited another vacancy from his predecessor Trump to fill a vacancy on the Federal Reserve Board of Governors.
Governor Lael Brainard is often considered a potential replacement for Powell or Quarles because of her stricter stance on regulatory issues.
Both Powell and Quarles were criticized by the progressive Democratic Party for relaxing some of the rules and regulations restricting banks after the global financial crisis.
But Powell’s success in guiding the U.S. economy through the pandemic has won him broad bipartisan support, and it is widely expected that he will be re-nominated.
Biden promised to make a decision “soon” last week and met with Powell and Brainard separately on Thursday.