The Federal Reserve’s top banking regulator will be stepping down next month, paving the way for President-elect Donald Trump to name a replacement and heading off a potential confrontation between the two.
There had been speculation that Trump might replace Barr after he takes office Jan. 20, the announcement will ease that transition amid speculation that the new president wants someone who is more bank-friendly to take the role.
Barr’s resignation from the position, which is the called the vice chair for supervision, as of Feb. 28, though he will stay on as a governor on the Fed board.
“”It has been an honor and a privilege to serve as the Federal Reserve Board’s vice chair for supervision, and to work with colleagues to help maintain the stability and strength of the U.S. financial system so that it can meet the needs of American families and businesses,” Barr said in a statement.
Though he did not specifically mention the rumors that Trump would attempt to remove him, he said “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.”
In a release announcing the decision, the Fed noted that it will take make any major decisions on rules and regulations until a successor is named. The bank has been revising a set of new rules, dubbed the Basel endgame, that have been broadly unpopular in the industry.
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