Michael Barr to step down as the Fed's head of banking supervision to avoid clash with Trump
Published On Jan 6, 2025, 11:01 AM
Michael Barr, the Federal Reserve's vice chair for banking supervision, will be resigning from his position as of February 28, 2025, to avoid potential conflicts with President-elect Donald Trump's administration. Barr will continue to serve as a member of the Fed's board until 2026. His resignation comes amid speculation about Trump's intent to appoint a bank-friendly successor. Following the announcement, bank stocks experienced a rally, especially the SPDR S&P Bank ETF.
Stock Forecasts
KBE
Positive
The step-down of Barr, viewed as a move to ensure a smoother transition for the incoming administration, signals a shift that may favor looser banking regulations under Trump. This environment could benefit bank stocks as they adjust to potentially more favorable regulatory conditions.
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