Quarles is the first person to formally hold the job of vice chair for supervision, a position created under the 2010 Dodd-Frank Act, the Obama administration’s sweeping overhaul of Wall Street rules.
In a press conference last month, Powell pledged to defer to whomever Biden nominates next as regulatory czar. Fed experts have speculated that the president might appoint someone to that role who favors tougher oversight of banks but also keep Powell on as central bank chair.
“It’s fully appropriate for a new person to come in and look at the current state of regulation and supervision and suggest appropriate changes, and I welcome that,” Powell told reporters at the time.
Although Quarles’ vice chairmanship ends Oct. 13, his underlying board term doesn’t run out until 2032, so he can stay at the Fed for the time being. His term as chairman of an international standard-setting body, the Financial Stability Board, doesn’t end until December.