Randal Quarles, the Federal Reserve’s governor and top banking cop, said Monday he would resign his position before the end of the year. The news of his departure from the central bank gives President Biden as many as four seats to fill on a seven-member board, effectively reshaping an agency that was heavy on Trump picks until very recently. Quarles’ two-sentence letter of resignation to the president was not unexpected, as his run as the Fed’s vice chairman of banking supervision ended a little over a month ago. His term on the board of governors, however, would not have ended until 2032.
Along with Quarles’ seat, the White House will be considering nominees to potentially fill two other seats on the board, including a vacancy he inherited from the previous administration, and Vice Chairman Richard Clarida’s slot when his term expires in January. Biden is also weighing whether to offer Jerome Powell a second term as Fed chairman before his first expires in February. Powell and Quarles have both been the subject of recent criticism by Democrats, including Sen. Elizabeth Warren (D-MA), who argued they have loosened Wall Street regulations put in place after the 2008 financial crisis.