Federal Reserve Vice Chair for Supervision Michael Barr announced his intent to step down from his vice chair role on Feb. 28, or once a successor is confirmed. The Fed indicated it does not intend to take up any major rulemakings until his successor is confirmed.
In his letter of resignation to President Joe Biden, Barr said he plans to continue to serve as a member of the Federal Reserve Board of Governors. He has served as vice chair for supervision since July 19, 2022.
“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. “The position of vice chair for supervision was created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system.”
Barr indicated his decision was influenced by his desire to avoid negative political turmoil over his position.
“The risk of a dispute over the position could be a distraction from our mission,” Barr said. “In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”
Barr faced a slew of pointed questions about his role in the Fed’s rulemaking regimen while testifying before the House Financial Services Committee in November, particularly with respect to the controversial proposed Basel III Endgame rule.
As vice chair for supervision, Barr oversaw the supervision and regulation of financial firms in the Board's jurisdiction and collaborated with other bank regulators to ensure the banking system remained a source of strength, despite stresses in early 2023.