Top Federal Reserve bank regulator, under fire from GOP, to step down next month
WASHINGTON (AP) — The Federal Reserve’s top financial regulator said Monday that he would resign next month, avoiding a potential confrontation with the incoming Trump administration and Republicans in the Senate.
Fed governor Michael Barr said in a letter to President Joe Biden that he would step down as vice chair of supervision Feb. 28, or earlier if a successor was confirmed. Yet Barr said he would remain on the Fed’s board of governors.
Barr oversaw the proposal of tough new rules for the largest U.S. banks, which would have required them to significantly increase their financial reserves. The proposal sparked fierce opposition from the largest financial firms, including JPMorgan Chase, and was sharply criticized by Senate Republicans.
During last year’s presidential campaign, there were published reports that former president Donald Trump would try to fire or demote Barr. But at a press conference in November, Fed Chair Jerome Powell said a president didn’t have the legal authority to do either one.