Fed Vice Chair Michael Barr Prepares for Potential Clash with Trump Administration

Federal Reserve Vice Chair for Supervision Michael Barr seeks legal advice amid concerns he might be removed by President-elect Donald Trump. Barr, appointed by President Biden, is exploring options with law firm Arnold & Porter. His term lasts until July 2026, and he plans to serve fully.

Federal Reserve Vice Chair for Supervision Michael Barr is seeking legal counsel amidst concerns about his potential removal by President-elect Donald Trump, sources indicate. This move suggests a looming conflict between Trump's incoming administration and the central bank.

Appointed by President Joe Biden, Barr has turned to the law firm Arnold & Porter for advice in his personal capacity, according to two sources. The Federal Reserve, as well as representatives for Arnold & Porter and the Trump transition team, have declined to comment. Barr also did not respond to requests for comment.

Barr's term, overseeing bank supervision, is set to expire in July 2026, and he has expressed his intent to serve the full term to Congress. Details about his legal strategy and whether he would contest his removal remain undisclosed, as sources spoke under anonymity.

(With inputs from agencies.)