Federal Reserve's Top Regulator Resigns Amidst Political Pressure

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Federal Reserve's Top Regulator Resigns Amidst Political Pressure
FEDERAL RESERVEMICHAEL BARRFINANCIAL REGULATIONS
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Michael Barr, the Federal Reserve's top financial regulator, is stepping down as vice chair for supervision to avoid potential conflict with the incoming Trump administration and Republican senators.

Michael Barr, Vice Chairman For Supervision of the Board of Governors of the Federal Reserve System, announced his resignation as vice chair for supervision, effective February 28th, 2024, or earlier if a successor is confirmed. Barr will remain on the Fed's board of governors, whose term lasts until 2032.

His resignation comes amidst anticipated clashes with the incoming Trump administration and Republican senators who opposed his proposed financial regulations, which sparked fierce criticism from major financial firms like JPMorgan Chase. Sen. Tim Scott, poised to chair the Senate Banking Committee, labeled Barr's regulations as 'disastrous,' claiming they would constrict bank lending and weaken the economy. Barr's move to step down as vice chair, but not governor, limits the Trump administration's ability to replace him directly

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FEDERAL RESERVE MICHAEL BARR FINANCIAL REGULATIONS TRUMP ADMINISTRATION POLITICS

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