Ahead of Donald Trump taking office, Federal Reserve's top banking regulator has resigned from his role as vice chair of supervision.

Michael Barr, the vice chair for supervision at the Federal Reserve, said he will leave his post in February, giving President Donald Trump a chance to fill one of the top positions on the powerful central bank.

Federal Reserve officials in December signaled concerns over president-elect Donald Trump’s policies potentially stoking inflation, contributing to a more-cautious approach to interest-rate cuts this year and even a pause this month.

President-elect Donald Trump’s advisers are considering how they will reshape the leadership of the Federal Reserve including elevating Fed Governor Michelle Bowman to be the central bank’s next vice chair for supervision,

President-elect Donald Trump and Federal Reserve Chair Jay Powell have clashed before, and there is a chance they could do so again in 2025.

The central bank cut rates last month but saw risks of somewhat firmer price pressures this year due to potential tariff increases by President-elect Trump.

Fed's Christopher Waller signaled that he supports cutting interest rates, despite high inflation and Trump's tariff concerns.

That said, Trump has also expressed an interest in having “at least a say” in monetary policy. Then again, in the same hour on Tuesday, Trump also called for the U.S. to absorb Canada, seize the Panama Canal and Greenland, and rename the Gulf of Mexico the Gulf of America. All or none of that might come to fruition.

Michael Barr’s sudden decision to step down as the Federal Reserve’s vice chair for supervision has just confirmed what everyone already saw coming: a full-blown clash between Donald Trump and the Federal Reserve.

President-elect Donald Trump’s legislative agenda faces roadblocks before he even takes office. Despite his Republican Party controlling all branches of the federal government, resolving a once-in-a-decade fight over the tax code as well as immigration and energy policy overhauls is troubled by arcane budget rules,