The Federal Reserve Board of the United States says its Vice Chair for Supervision Michael Barr will step down from his position effective February 28, 2025.

The move is apparently aimed at avoiding possible conflict with President-elect Donald Trump, who is calling for an easing of financial regulations.

The Fed made the announcement on Monday.

Barr assumed the post in July, 2022. He has worked to strengthen regulation of financial institutions following bank failures in 2023.

The Fed's statement quoted Barr as saying, "The position of vice chair for supervision was 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." He added, "The risk of a dispute over the position could be a distraction from our mission."

Trump is scheduled to be sworn in as president on January 20.

The statement said Barr will continue to serve as a member of the Fed's Board of Governors.