Fed vice chair exits role as DOGE gears up for audit

Federal Reserve Board Vice Chair for Supervision Michael Barr resigned from his position last week after he previously claimed that he wanted to avoid a potential “dispute over the position” with the Trump administration.

Barr’s resignation follows reports that the Department of Government Efficiency is preparing to audit the Federal Reserve.

‘Asking a Magic 8-Ball whether we should change rates is ACTUALLY better than the Fed!’

In January, Barr sent a letter to then-President Joe Biden, stating that he planned to exit as vice chair on February 28 or earlier if a successor was confirmed. He noted that he would “continue to serve as a member of the Federal Reserve Board” after stepping down.

In a press release announcing his decision, Barr called it “an honor and a privilege to serve as” vice chair, which he noted was a position “created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system.”

“The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor,” Barr declared.

Bloomberg reported that Vice Chair Philip Jefferson and Governor Michelle Bowman remain on the committee. The media outlet noted that President Donald Trump will likely have to appoint an existing board member as the next vice chair for supervision since a new vacancy is not expected until next year.

Elon Musk, a critic of the Federal Reserve, indicated last month that the DOGE is preparing to conduct a review of the central bank.

“All aspects of the government must be fully transparent and accountable to the people. No exceptions, including, if not especially, the Federal Reserve,” Musk wrote in a post on X.

He has repeatedly called the Federal Reserve “absurdly overstaffed.”

According to a September 2023 report from Reuters, the central banking system employs roughly 24,000 people.

Federal Reserve Chair Jerome Powell has pushed back on Musk’s overstaffing claims.

“We run a very careful budget process where we’re fully aware. We owe that to the public, and we believe we do that,” Powell told Fox Business in January.

Musk has also scrutinized the Fed’s system for determining rate changes.

“Asking a Magic 8-Ball whether we should change rates is ACTUALLY better than the Fed!” he stated.

Musk has argued that lowering rates would “materially benefit lower income earners.”

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