11:34 AM EST, 01/06/2025 (MT Newswires) -- The Federal Reserve said Monday that Vice Chair for Supervision Michael Barr will step down from the position, effective Feb. 28, but will remain a governor on the Federal Reserve Board.

Barr said that he believed the "risk of a dispute over the position could be a distraction from our mission."

There have been turbulent disagreements over the last two years over the role of the Fed in regulating banks, particularly the setting of reserve requirements for large banks in the wake of bank failures in 2023.

Republicans, who will control the White House and both houses of Congress after the inauguration of President-Elect Donald Trump later this month, have particularly pushed back again tighter restrictions and more transparency on how banks are addressing environmental concerns.

"In the current environment, I've determined that I would be more effective in serving the American people from my role as governor," Barr said.

The Fed said that the Board of Governors is not planning to consider any major rulemaking until a successor to Barr is confirmed.