Editor’s note: This story is developing and will be updated.
The Federal Reserve’s Michael Barr will step down from his role as vice chair for supervision next month, the central bank said Monday.
Barr will exit that post by Feb. 28, or earlier if a successor is confirmed, according to a Fed news release, but will continue to serve as governor.
Barr, the Fed’s top bank regulator, has served as vice chair since July 2022; he submitted his letter of resignation to President Joe Biden.
Barr’s term as vice chair didn’t expire until July 2026, but those who’ve recently served in that position have resigned after a president from the opposing party wins an election. He was widely viewed as a potential target of the incoming Trump administration, and questions swirled as to whether the president-elect may try to oust Barr and whether Barr, in turn, could sue to keep his position.
“The position of vice chair for supervision was created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system,” Barr said in a statement Monday. “The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”
Barr’s term as Fed governor expires in January 2032. The most likely candidate to replace Barr as vice chair for supervision is Fed Gov. Michelle Bowman, given her qualifications, experience and Senate confirmation, Peter Dugas, executive director at consulting firm Capco, has told Banking Dive.
The Fed board “does not intend to take up any major rulemakings until a vice chair for supervision successor is confirmed,” the central bank said Monday.
