Michael Barr will step down as head of the Fed’s banking supervision, avoiding a clash with Trump
Michael Barr, vice chairman for supervision at the U.S. Federal Reserve, speaks during a hearing of the Senate Banking, Housing and Urban Affairs Committee in Washington, DC, U.S., Tuesday, March 28, 2023.
Samuel Corum | Bloomberg | Getty Images
The Federal Reserve’s top banking regulator will step down next month, clearing the way for President-elect Donald Trump to name a replacement.
There has been speculation that Trump could replace Barr after he takes office on January 20, and the announcement will ease that transition amid speculation that the new president wants someone more bank-friendly to fill the role.
Barr resigned from the position, which is called vice chairman for supervision, effective February 28, although he will remain a governor on the Fed’s board.
“It has been my honor and privilege to serve as Vice Chairman of the Federal Reserve Board for Oversight and to work with my colleagues to maintain the stability and strength of America’s financial system so it can meet the needs of American families and businesses,” Barr said in a statement.
While he did not specifically mention rumors that Trump would try to remove him, he said, “The risk of a dispute over the position could detract from our mission. In the current environment, I have decided that I would be more effective in serving the American people from my role as governor.”
In a statement announcing the decision, the Fed noted that it will take all major decisions on rules and regulations until a successor is named. The bank revised a series of new rules, called the Basel endgame, that were largely unpopular in the industry.
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