Michael Barr, Vice Chairman of the Board of Governors of the Federal Reserve System, speaks at a hearing of the Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, March 28, 2023, in Washington, DC.
Samuel Corum | Bloomberg | Getty Images
The Federal Reserve's top banking regulator is set to resign next month, clearing the way for President-elect Donald Trump to name his successor and avoid a potential conflict between the two.
There had been speculation that Mr. Trump would replace Mr. Barr after he was inaugurated on January 20, but there was speculation that the new president wanted someone more pro-banking to fill the role. While there has been a lot of speculation, this announcement will ease the transition.
Barr resigned from his position as vice chairman of oversight on February 28, but will remain on the Fed's board as a director.
“It is an honor to serve as Vice Chairman of the Board of Governors of the Federal Reserve System and work with my colleagues to help maintain the stability and strength of the U.S. financial system to meet the needs of American families and loved ones. “We are honored to be a part of this business,'' Barr said in a statement.
He did not specifically address rumors that Trump might try to remove him from office, but said, “The risk of a fight for the position could distract us from our mission. “I decided that he was more capable,” he said. I was committed to serving the American people in my role as Governor. ”
In a release announcing the decision, the Fed said it must make important rules and regulatory decisions until a successor is named. The bank is rolling out a new set of rules known as the Basel Endgame, which were widely unpopular within the industry.
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