Federal Reserve Vice Chair for Supervision Michael Barr is reportedly seeking legal counsel to protect his position amid potential removal attempts by President-elect Donald Trump. Sources indicate Barr is gearing up for a possible legal battle, underscoring a potential conflict brewing between the incoming administration and the central bank.
Barr, appointed by President Joe Biden, is consulting with law firm Arnold & Porter in a personal capacity, as individual officials, not agencies, can contest dismissals in court. With his term set to expire in July 2026, Barr has committed to completing his tenure, while looming threats to his position raise concerns over the Fed’s independence.
The tension follows reports of Trump’s advisers exploring methods to exert influence over the Fed, alarming officials who advocate for the central bank’s autonomy. Barr’s efforts to tighten financial regulations have sparked criticism, highlighting the broader clash between regulatory stability and the Trump administration’s deregulatory agenda.
(With inputs from agencies.)