Federal Reserve's Michael Barr Seeks Legal Advice Amid Looming Conflict

Michael Barr, Federal Reserve Vice Chair for Supervision, is seeking legal advice amid speculation that President-elect Donald Trump may attempt to remove him. This move highlights potential conflict between the incoming administration and the Fed, emphasizing concerns over central bank independence crucial for monetary policy setting.

Michael Barr, the Federal Reserve's Vice Chair for Supervision, is exploring legal options to counter any attempts by President-elect Donald Trump to remove him from office, sources reveal. This development signals a possible conflict between the new administration and the central bank, raising concerns over the institution's independence.

While Barr was tapped by President Joe Biden, his term overseeing bank supervision lasts until July 2026, and he has expressed his intention to serve the full term. Reports suggest Trump's advisers are contemplating ways to increase their influence over the Fed, causing alarm among officials who argue that the central bank's autonomy is essential for effective monetary policy.

Barr's search for legal counsel comes in response to discussions among Trump's advisers as they debate strategies to potentially oust him. This pursuit of outside legal aid underscores how seriously Barr is taking these threats, recognizing that individual officials must have legal standing to combat removal attempts in court.

(With inputs from agencies.)