After being confirmed last week in the Senate by a 65-32 margin, Randal Quarles officially took his place as a member of the Board of Governors of the Federal Reserve System on Friday.
Quarles will also serve as the Fed’s vice chairman of supervision, a position previously held by Daniel Tarullo, who unexpectedly stepped down as a Fed Governor earlier this year.
Tarullo was considered to be the Fed’s point person on overhauling the financial system in the wake of the financial crisis. Many consider the Fed position of vice chairman of supervision to be the most powerful in banking.
President Barack Obama appointed Tarullo to the Fed for an unexpired term ending Jan. 31, 2022, so his resignation took many by surprise.
President Donald Trump nominated Quarles, an investment-fund manager and former Republican Treasury official, to serve as Tarullo’s replacement.
Quarles now becomes the first person to officially hold the position of vice chairman of supervision. Tarullo held the position on a de facto basis.
Prior to his appointment to the Fed, Quarles was founder and managing director of the Cynosure Group, a Utah-based investment firm. Before founding the Cynosure Group, Quarles was a partner at The Carlyle Group, a private equity firm based in Washington, D.C.
Quarles worked at the Treasury under President George W. Bush. According to his Fed bio, from April 2002 to August 2005, Quarles was assistant secretary of the Treasury for international affairs. During that time, Quarles also served as policy chair of the committee on foreign investment in the United States.
From September 2005 to November 2006, Quarles served as under secretary of the Treasury for domestic finance.
Quarles will now serve as the Fed vice chairman for supervision until Oct. 13, 2021.