Fed's Quarles Appointed as Chairman of Financial Stability Board

(Bloomberg) -- Federal Reserve Governor Randal Quarles has been named to lead the Financial Stability Board, a move that puts him at the helm of a panel whose global approach to bank regulation is at odds with President Donald Trump’s “America First” agenda.

The selection of Quarles, the Fed’s vice chairman for supervision, was announced by the Basel-based FSB in a statement Monday. Quarles will serve a three-year term, succeeding Bank of England Governor Mark Carney, while continuing in his role at the U.S. central bank.

“Under Mark’s leadership, the FSB has played a central coordinating role in building a resilient global financial system in the aftermath of the financial crisis,” Quarles said in the panel’s statement. “Ten years on, the FSB’s work remains just as relevant.”

Trump administration officials and congressional Republicans have persistently questioned whether U.S. banks should have to adhere to standards set by international organizations. Quarles’s elevation could attract attention from the president, who has repeatedly criticized Fed Chairman Jerome Powell over monetary policy decisions.

The FSB also announced Monday that Klaas Knot, president of the Dutch central bank, will serve as its vice chairman with Quarles. Knot will succeed Quarles as FSB chairman in 2021.

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