Fed’s Barr to resign early from regulatory job to avoid ‘dispute’ over role

Michael Barr will resign as Vice Chair of Supervision at the Federal Reserve on February 28. This decision is made to avoid legal disputes with the incoming President Donald Trump, who can now select new bank regulators to create a more lenient regulatory environment. Barr intends to keep his position on the Board of Governors.

Barr’s resignation paves the way for Trump to influence the regulatory scene by appointing new bank regulators. Despite initial plans for stricter regulation, Barr faced significant opposition from the banking sector. While no open seats are currently available on the Board, Trump’s choices for replacements are still somewhat limited.