Michael Barr to step down as the Fed’s head of banking supervision to avoid clash with Trump
- Michael Barr, the Federal Reserve’s top banking regulator, will be stepping down Feb. 28, though he will stay on as governor.
- There had been speculation that President-elect Donald Trump might replace Barr after he takes office Jan. 20.
- Barr said in a statement that “the risk of a dispute over the position could be a distraction from our mission.”
The Federal Reserve’s top banking regulator will be stepping down next month, paving the way for President-elect Donald Trump to name a replacement and heading off a potential confrontation between the two.
Michael Barr’s resignation from the position, which is formally called the vice chair for supervision, takes effect as of Feb. 28, though he will stay on as a governor on the Fed board. His term as Fed governor lasts until 2026.
There had been speculation that Trump might seek to replace Barr after he takes office Jan. 20, the announcement will ease that transition amid speculation that the new president wants someone who is more bank-friendly to take the role.
Though he did not specifically mention the rumors that Trump would attempt to remove him, Barr said in a statement that “the risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”