Federal Reserve's Power Struggle: Barr vs Trump Administration

Michael Barr, Fed's Vice Chair for Supervision, is seeking legal guidance amid fears of removal by incoming President Donald Trump. The situation underscores growing tensions over the Federal Reserve's independence. Barr's regulation-heavy stance has already drawn ire from Wall Street and Republican officials.

In a developing conflict between the Federal Reserve's leadership and the incoming Trump administration, Michael Barr, the Fed's Vice Chair for Supervision, has sought legal counsel to combat potential efforts to remove him, according to informed sources.

Barr, appointed by President Joe Biden, is reportedly exploring his legal options in a personal capacity, highlighting how contentious the struggle for regulatory influence over the central bank might become. The Federal Reserve has, so far, not issued any official comment.

Barr's situation has arisen amidst reports of Trump's advisers aiming to expand the White House's control over the Fed, causing unease among officials and investors who value the institution's independence for its monetary policy role. Legal complexities surround the issue of demoting Fed officials, and Barr's assertive regulatory approach has not endeared him to Wall Street or GOP officials.

(With inputs from agencies.)