Michael Barr, the Federal Reserve’s vice chair for supervision, confirmed he will step down on Feb. 28 to avoid a distraction over the central bank’s banking regulatory mission. Barr announced on Jan. 6 that he would resign before his term expires in July 2026. The central bank’s chief regulator plans to remain on the Federal Reserve Board of Governors until January 2032. His position was established shortly following the global financial crisis to foster a financial system of accountability and transparency. “The risk of a dispute over the position could be a distraction from our mission, ” Barr said in a letter to President Joe Biden. “In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”…