The U.S. Federal Reserve System Governor Daniel Tarullo listens before the Senate Banking, Housing and Urban Affairs Committee during a hearing to examine financial stability and data security, on Capitol hill in Washington D.C., the United States, Feb. 6, 2014. Trump's administration backs looser regulation, and House Financial Services Committee Chairman Jeb Hensarling, R-Texas, has proposed conducting the reviews every other year rather than annually and barring the Fed from using the less-defined qualitative assessments as grounds to block capital payouts.
Tarullo announced his decision to step down "on or around" April 5 in a February 10 letter to President Donald Trump.
U.S. Federal Reserve governor Daniel Tarullo, a top official charged with bank regulation, said on Friday that he will resign from the position in early April.
Janet Yellen's four-year term as Federal Reserve chair is due to expire in February 2018, and given Trump's criticism of the Fed and of Yellen, he is widely expected to appoint a new chief.
Trump is widely expected to appoint someone to the now vacant post of Federal Reserve vice chairman in charge of bank oversight, a position left open during the Obama administration.
During his campaign, Trump attacked the Fed's independence, accusing it of deliberately keeping interest rates low to support former President Barack Obama. Tarullo essentially filled that role, but would have likely found his powers and influence curtailed by a Trump-appointee. With his departure, the seven-person board will have three vacancies to fill.
Tarullo was a central figure for the Fed in crafting and implementing the Dodd-Frank financial reform law, and his departure makes clear that the Trump administration will soon dictate the direction of regulation at the agency going forward.
The Dodd-Frank Act created a position of vice chairman for bank supervision.