Fed’s Tarullo to Step Down in April

Federal Reserve Gov. Daniel Tarullo, who oversees the central bank’s supervision activities, said he will step down in early April.

Tarullo announced his decision to step down “on or around” April 5 in a Feb. 10 letter to President Donald Trump. Tarullo’s term began in 2009 and is scheduled to expire on Jan. 31, 2022. He has worked at the Fed under former Chairman Ben Bernanke and Chair Janet Yellen.

“It has been a great privilege to work with former Chairman Bernanke and Chair Yellen during such a challenging period for the nation’s economy and financial system,” Tarullo wrote.

Tarullo was a close adviser to former President Barack Obama during his 2008 presidential campaign and was one of Obama’s first appointments to the Fed’s board. Tarullo has been an influential figure at the central bank because of his role as chairman of the committee on supervision and regulation, which took on a major role in the wake of the 2008 financial crisis.

He has been held in high esteem by financial regulation advocates like Better Markets President and Chief Executive Dennis Kelleher. In a Friday statement, Kelleher called Tarullo “a fearless fighter for protecting the American people from an unstable financial system, another financial crisis and an economic catastrophe.”

In a separate statement, Yellen praised Tarullo’s role in coming up with “a new framework for ensuring the safety and soundness of our financial system following the financial crisis.”

A spokeswoman for Senate Banking Committee Chairman Mike Crapo (R-Idaho) declined to comment on Tarullo’s announcement, and a spokesman for House Financial Services Committee Chairman Jeb Hensarling (R-Texas) did not immediately respond to a request for comment.

Once Tarullo leaves, three of the board’s seven seats will be open. In addition to Yellen, all current governors are Obama appointees.

Morning Consult