Quarles is the first person to formally hold the post of vice president of oversight, a post created under the Dodd-Frank Act of 2010, the Obama administration’s radical overhaul of Wall Street rules.
At a press conference last month, Powell pledged to defer to whoever Biden will appoint the next regulatory tsar. Fed experts have speculated that the president might appoint someone who would promote tighter supervision of banks, but also keep Powell as central bank chairman.
“It is only fitting that a new person is coming to review the current state of regulation and supervision and suggest appropriate changes, and I welcome that,” Powell told reporters at the time.
Although Quarles’ vice-presidency ends on October 13, his underlying term on the board does not expire until 2032, so he can stay with the Fed for now. His term as chairman of an international standards body, the Financial Stability Board, does not end until December.