Michael Barr Resigns Amid Regulatory Tensions

Michael Barr, the Federal Reserve's Vice Chair for Supervision, has announced his resignation effective February 28, 2025, amidst potential tensions with the incoming Trump administration. Barr, who will remain on the Fed's Board of Governors, cited the risk of a dispute over his position as a distraction from the Fed's mission. His tenure was marked by efforts to impose stricter financial regulations, which faced opposition from Senate Republicans and the banking industry. Speculation had arisen that President-elect Donald Trump might attempt to remove Barr, but legal experts and Fed Chair Jerome Powell indicated such action would exceed presidential authority. Barr's departure allows Trump to appoint a successor potentially more aligned with his deregulatory agenda. The Federal Reserve has stated it will not undertake major rulemakings until a new vice chair is confirmed.