Federal Reserve (Fed) Board Member and Vice Chair for Supervision will be stepping down from his regulatory role. The announcement came from a Federal Reserve press release and is expected to take place at the end of February.
Fed’s Barr to step down from bank oversight role effective February 28, or when a successor is chosen. According to reporting by Reuters, incoming President Donald Trump would be seeking to strip Barr of his position powers. A tactical resignation will make it difficult for Trump to select a ‘friendlier’ regulatory pick as the resignation means the only candidates on offer are already-existing members of the Fed’s board.
Despite resigning from the supervision vice chair position, Barr would remain as part of the Board of Governors until the end of his term in 2026.
As noted by Reuters, “Fed Governor Michelle Bowman, who has been regularly critical of Barr’s efforts to impose tougher rules on the banking sector, is widely seen by lobbyists and analysts as a candidate to replace him. Christopher Waller, another Fed governor nominated by Trump in his first term, is viewed as another potential candidate by industry officials.”