Fed Vice Chair Seeks Legal Advice Amid Potential Conflict with Incoming Administration - Reuters

Investing.com -- Federal Reserve Vice Chair for Supervision Michael Barr is exploring legal options in response to potential attempts by President-elect Donald Trump to remove him from his position. This report, based on anonymous sources, indicates that a possible conflict between the upcoming administration and the central bank is looming.

According to two sources, Barr, who was appointed by President Joe Biden as the Fed's top regulatory official, has recently sought counsel from the law firm Arnold & Porter in a personal capacity. However, the details of Barr's discussions with attorneys and how he might respond to a potential removal attempt remain unclear.

The Federal Reserve, Arnold & Porter, and Trump’s transition team declined to comment on the matter. Barr himself did not respond to requests for comment.

Barr, whose term as the bank's supervisor ends in July 2026, had previously indicated his intention to fulfill his full term before Congress. Sources discussing Barr's plans preferred to remain anonymous.