Michael Barr Resigns as Fed Banking Regulator

Michael Barr, the Federal Reserve's vice chair for supervision, announced he will resign on February 28, 2024, to avoid potential conflicts with the incoming Trump administration. Barr will remain on the Fed's board of governors, a position he holds until 2032, and cited the risk of disputes over his supervisory role as a distraction from the Fed's mission. He has faced criticism from Senate Republicans for advocating stricter banking regulations following several bank failures in 2023. This resignation follows a trend of officials pre-emptively leaving their posts before Trump's inauguration, including SEC chair Gary Gensler and FBI director Chris Wray. While Trump can appoint a new supervisor from the existing governors, Barr's departure limits the administration's options regarding the Fed's leadership. Barr's announcement underscores the tension between the Fed's independence and the incoming administration's regulatory approach.