Michael Barr, the vice chair for supervision at the US Federal Reserve, announced his resignation effective February 28, 2023. His departure comes amid speculation that President-elect Donald Trump may seek a more bank-friendly replacement once he takes office. By stepping down, Barr aims to prevent a potential confrontation over his role, facilitating a smoother transition for the new administration. Although Barr will resign from his supervisory role, he will continue to serve as a governor on the Federal Reserve Board.
In his statement, Barr expressed pride in his work to maintain the stability of the US financial system, which is crucial for American families and businesses. He cited concerns that any dispute regarding his position could distract from the Fed’s mission, leading him to believe his effectiveness would be greater in his remaining governorship role. The Federal Reserve stated that no significant decisions regarding rules and regulations, including the controversial Basel endgame, will be made until a successor is appointed. Barr’s resignation marks a significant change in leadership at the Fed, with potential implications for future regulatory approaches in the banking sector.
