US Treasury Secretary Scott Bessent has halted all pending activities at the US Consumer Financial Protection Bureau (CFPB) on his first day in office, effective immediately. This decision comes as a surprise and signals a significant shift in policy under President Donald Trump.
The move was made by Bessent, who took over both the Treasury and CFPB leadership roles after former Director Rohit Chopra’s sudden firing. Chopra had pursued aggressive enforcement and regulation to protect consumers.
The CFPB staff and contractors were instructed to cease all activities “to promote consistency with the administration’s goals.” This has raised concerns among lawmakers, including Senator Elizabeth Warren, who called the move an invitation to predatory corporate misconduct.
Warren stated that shutting down enforcement actions would be at odds with Trump’s claim of lowering costs for families. She accused him of doing little to address this issue so far.
The development marks a significant change in the CFPB’s approach and raises concerns about its ability to protect consumers under Trump’s leadership.
Source: https://www.reuters.com/world/us/trumps-consumer-watchdog-freezes-cfpb-activity-first-day-job-2025-02-03