Federal Reserve

Trump to nominate Randal Quarles to Fed board

Key Points
  • Trump's nomination of Randal Quarles ends months of speculation that he would be appointed to the Federal Reserve board.
  • Quarles will take over as overseer of the nation's bank system, a role Daniel Tarullo had filled before he resigned in April.
Trump nominates Randal Quarles to Fed board
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Trump nominates Randal Quarles to Fed board

President Donald Trump will nominate Randal Quarles to the Federal Reserve board, the White House said Monday.

For months, Quarles had been floated as a potential nominee to fill one of the vacancies at the central bank. He will take over as overseer of the nation's banking system, a role Daniel Tarullo had filled before he resigned from the Fed in April.

If confirmed, Quarles would be the first Fed official installed by an administration looking to ease financial regulations.

Randy Quarles, managing director of The Cynosure Group.
Chris Goodney | Bloomberg | Getty Images

Analysts at Compass Point Research point to a statement from Quarles calling Dodd-Frank "a failure of ambition" and a "concession to inappropriate pressures."

"Our view remains that Mr. Quarles would use his post as vice chair for supervision to orchestrate a broad deregulatory agenda for the nation's banks, with a focus on increasing stress test transparency, altering the Volcker Rule, and securing relative regulatory relief for regional/community banks," Compass Point said in a note.

Quarles runs private investment firm Cynosure Group and previously was a partner at private equity firm the Carlyle Group. He previously served as the under secretary of the Treasury during George W. Bush's administration.

The White House and representatives for Quarles at his investment firm Cynosure Group did not immediately respond to CNBC's request for comment.

— CNBC's Jeff Cox contributed to this report.