The Federal Reserve's top regulatory official cautioned Thursday against a weakening of bank rules and oversight that could make firms vulnerable to surprise shocks. Fed Vice Chair for Supervision Michael Barr,

The Fed board, he said, should resist initiatives that impede effective supervision by discouraging examiners to flag issues early, or ones that add to the process unnecessarily, he said.

Federal Reserve Vice Chair for Supervision Michael Barr urged the Trump administration to continue reforms initiated under Biden and emphasized the importance of keeping the central bank apolitical.

The Federal Reserve’s top bank cop, Michael Barr,implored regulators to stay vigilant about risks to the financial system as he gets ready to step down from his role as vice chair for supervision while remaining on the Board of Governors.