Michael S. Barr, the Federal Reserve Board Vice Chair for Supervision, will step down from his role effective February 28, 2025 as incoming President Donald Trump vows to place massive tariffs on foreign goods.
Barr, who held senior roles in the U.S. Treasury has already submitted his letter of resignation to president Joe Biden, according to an announcement from the Federal Reserve.
Barr's resignation comes in light of looming tariffs that will go into effect in Donald Trump's second presidency.
Trump pressured Republicans to package all his campaign promises into one massive spending bill in light of his approaching January 20th inauguration.
Neel Kashkari, the president of the Minneapolis Federal Reserve, cautioned that if Donald Trump implements his tariffs, it may trigger a tit-for-tat response that would create long-term inflation.
Appointed in 2022, Barr focused on maintaining financial stability by supervising financial firms and navigating stresses in the banking system.
The Federal Reserve will pause major rulemaking until Barr's successor is confirmed.
It's speculated that Barr will likely resume his role as the Roy F. and Jean Humphrey Proffitt Professor of Law at the University of Michigan Law School.
He went on leave at the Michigan law school to take on the role at the Federal Reserve Board of Governors.
