The Federal Reserve's top regulatory official, Michael Barr, announced Monday that he will step down in the coming weeks, clearing the way for President-elect Trump to reshape federal banking regulation. Barr, who has served as the Fed's vice chair for regulation since 2022, said he would step down on Feb. 28 or earlier if a successor is confirmed. He said he would remain on the Federal Reserve Board. Barr has been discussing his options with outside legal counsel, and his resignation would avoid a major legal battle. Barr's term as vice chair for regulation was originally scheduled to end in 2026. But some Republicans and Trump allies have proposed a legally contentious plan to remove or demote him from office, making it easier for Trump to implement his plans for financial regulation. "The risk of a dispute in this position could distract us from our mission," Barr said in a statement.