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The
vote was 66-28, with more than a dozen Republicans joining
Democrats in support. Barr fills the last vacancy on the Fed's
seven-member board as the central bank steps up its fight on
40-year high inflation.
The Fed has been without a point person on regulation since
Randal Quarles, a Trump appointee, left the role last October
after four years.
Many analysts expect Barr to revisit changes that Quarles made
to how the Fed assesses the banking industry's ability to
withstand a severe economic downturn.
Quarles streamlined that stress test process in response to
industry complaints that it was opaque and subjective, and
loosened some other rules as well in ways that critics say make
the financial system riskier.
Barr is also expected to use the powerful role overseeing the
country's largest lenders to step up efforts on issues dear to
the Biden administration such as climate change risk, as well as
addressing other rapidly evolving areas like fintech and
cryptocurrencies.
President Joe Biden's previous pick for the vice chair of
supervision role, Sarah Bloom Raskin, withdrew after drawing
insurmountable opposition from Republicans and moderate
Democrats.
At the Treasury, Barr was a central figure in the drafting of
the 2010 Dodd-Frank financial reform law, which established a
range of safeguards following the 2008 financial crisis.
(Reporting by David Morgan in Washington and Lindsay Dunsmuir
and Ann Saphir; Editing by Leslie Adler, Chizu Nomiyama and
Jonathan Oatis)
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