Overview

• Michael Barr announced he will step down as Federal Reserve Vice Chair for Supervision but will remain a governor on the Fed's Board until 2032.
• The decision avoids a potential legal dispute with President-elect Trump, who had considered removing Barr from his role.
• Barr's departure accelerates opportunities for the incoming administration to implement a more industry-friendly regulatory agenda.
• Fed Governor Michelle Bowman, a critic of Barr’s regulatory approach, is seen by analysts as a likely candidate for the role.
• The Federal Reserve has stated it will not pursue significant rule changes until a new vice chair for supervision is confirmed.