U.S. Fed’s Michael Barr to Step Down as Vice Chair for Supervision
Michael Barr, the U.S. Federal Reserve’s vice chair for supervision, announced his resignation effective February 28, 2025, or sooner if a successor is confirmed. He will remain a member of the Federal Reserve Board of Governors. Barr stated that his decision was to avoid potential conflicts with the incoming Trump administration, emphasizing the need for effective leadership amid ongoing challenges in banking regulation. Analysts express concern that this move could indicate increasing politicization of banking oversight, with banks facing larger policy shifts with administration changes. Barr, who had significant influence over cryptocurrency regulations, faced criticism from Republican lawmakers over perceived failures during the 2023 bank crises and for his approach to the Basel III Endgame proposal. Despite Barr's departure, the Democratic majority at the Federal Reserve is expected to remain until early 2026, likely impacting any immediate successor decisions. Michelle Bowman, a potential candidate for Barr's replacement, has previously been critical of Barr's policies and advocates for a balanced approach to regulation and innovation.
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