Michael Barr, US Federal Reserve Vice Chairman for Supervision, speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., US, on Tuesday, March 28, 2023.
Samuel Corum | Bloomberg | Getty Images
The Federal Reserve's top banking regulator is set to step down next month, paving the way for President-elect Donald Trump to name a replacement and avert a potential showdown between the two.
There has been speculation that Trump might 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 take the job.
Barr resigned from his position, called vice chairman for oversight, effective February 28, though he will remain as Fed governor.
“It has been an honor and privilege to serve as the Federal Reserve's Vice Chairman for Supervision, and to work with colleagues to help maintain the stability and strength of the U.S. financial system so that it can meet the needs of American families and American households,” Barr said in a statement.
Although he did not specifically mention rumors that Trump would try to impeach him, he said “the risk of a conflict over the position could be a distraction from our mission. In the current environment, I decided I would be more effective.” “In serving the American people through my role as governor.”
In a statement announcing the decision, the Fed indicated that it would make any major decisions on rules and regulations until a successor is named. The bank is reviewing a set of new rules, dubbed the “Basel endgame,” which have been widely unpopular in the industry.
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