Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, released this statement following Michael Barr’s announcement that he planned to step down from his leadership role as Vice Chair of Supervision of the Board of Governors of the Federal Reserve System (Fed) following reports that Trump’s advisers were weighing the decision to demote him. Vice Chair Barr will remain on the Board of the Federal Reserve.

“I am deeply concerned to hear reports that prior to Vice Chair Barr’s announced resignation from his leadership post, President-elect Trump’s senior advisers were silently plotting to strip Barr of his role as the Fed’s Vice Chair of Supervision. This is an unprecedented and unacceptable attempt by the incoming Trump Administration to undermine the Federal Reserve. Make no mistake, Trump and his senior advisers are plotting to blow up the independence of the Fed for their own gain. Congress structured the Federal Reserve system to ensure it carries out its duties in a professional and accountable manner. This includes ensuring people have jobs and keeping inflation in check to maintain the lowest possible prices for American families – not bending to the whims of the President or any single political party. In fact, the Fed’s independence has been a cornerstone to our long-term economic growth for more than a century.

“In the face of these misguided attacks, I am further disappointed that the Fed announced they do not intend to take up any major rules until a new Vice Chair of Supervision is confirmed. This is also without precedent and could last for an indefinite period. Such a decision prevents the Fed from carrying out its duties to promote a safe and sound banking system, so I’d urge the Fed to reconsider this moratorium.

“Nevertheless, I would like to commend Vice Chair Barr for his public service, which will continue as a Governor of the Federal Reserve Board. As Vice Chair of Supervision, Barr worked successfully with his colleagues to carry out the Federal Reserve’s duties, including quickly stabilizing the banking system following the 2023 failures of Silicon Valley Bank and other mid-size banks, events that were partly driven by Trump’s deregulatory policies. I, and other Democrats in Congress will continue to combat efforts from the incoming Trump Administration to further deregulate our nation’s banking system and gut the Fed’s independence.”

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See Ranking Member Waters recently released fact sheet blasting President-elect Trump and Elon Musk’s for their plans to gut the Federal Reserve.