Fed Vice Chairman Barr to resign, paving the way for Trump's financial regulatory reform

The Federal Reserve's top regulatory official, Michael Barr, announced Monday that he will resign in the coming weeks, clearing the way for President-elect Trump to reshape federal bank regulation. Barr, who has served as the Fed's vice chairman for supervision since 2022, said he would resign on Feb. 28 or earlier if a successor is confirmed. He said he would continue to serve on the Federal Reserve Board. Barr has been discussing his options with outside legal counsel, and his resignation would avoid a major legal fight. Barr's term as vice chairman for supervision was originally scheduled to end in 2026. But some Republicans and Trump allies have proposed a legally controversial plan to remove or demote him so that Trump can more easily implement his financial regulatory agenda. "The risk of a contentious battle in this position could distract from our mission," Barr said in a statement.