What you should know:
- As Fed Chair Jerome Powell's
term expires next year , the door opens for a Trump nominee more aligned with the GOP. - Michelle Bowman's bid for a Fed supervisory role
gains ground after a majority vote from the Senate Banking Committee. - Bankers remain worried that Treasury Secretary Scott Bessent's search for a permanent FDIC chair is
taking too long .
The game of musical chairs being played by banking regulators is showing no signs of stopping, as political appointments at the Federal Deposit Insurance Corporation, Consumer Financial Protection Bureau, Federal Reserve and other agencies remain in limbo.
The
"It is the policy of my Administration to significantly reduce the private expenditures required to comply with Federal regulations to secure America's economic prosperity and national security and the highest possible quality of life for each citizen," Trump said in his Jan. 31
A host of hearings and confirmations have followed since then, including the appointment of
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Credit unions aren't exempt from these challenges either, as the
Democratic politicians in support of the dismissed board members called upon the NCUA's inspector general to review Trump's firing and furthermore, remarked that the agency lacks the necessary quorum on its board to conduct regulatory business. Trump appointee Kyle Hauptman is the sole remaining member of the NCUA board, which the
"In light of President Trump's decision to fire two of the three Board Members without cause, we write to request information regarding the ability of the NCUA Board, and by extension the agency, to fulfill its mission with only one Board member," Senator Elizabeth Warren, D-Mass., and Representative Maxine Waters, D-Calif., wrote in a letter.
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Dive into the recaps of regulatory moves below to better predict where each regulatory agency could be heading next.
Bessent continues to back interim FDIC chair, seeks permanent pick
The FDIC has been without a permanent chair for roughly four months, following the
During a House Financial Services Committee hearing earlier this month, Bessent defended the lengthy search period: "Mr. Hill is a very capable regulator, having been on the board of the FDIC." While Hill's unconfirmed stint in office might seem long at four months, a similar situation with the Office of the Comptroller of the Currency's Acting Comptroller Michael Hsu
"I am constantly reviewing the list and thinking who is best to lead that important institution … I think it's very important to get these regulators in place," Bessent said during the hearing.
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Powell could stay at the Fed past 2026, pending a title change
Federal Reserve Chair Jerome Powell isn't set to leave the helm of the Federal Reserve until May 2026, but that hasn't stopped questions from circulating about his tenure on the agency's board of governors.
Powell said during a press conference after the May 7 Federal Open Market Committee meeting that both his focus and the focus of his colleagues is all on "trying to navigate this tricky passage we're in right now [and] trying to make the right decisions," not on his departure plans for next year.
While his term as Fed chair expires next year, and tradition has seen outgoing chairs depart the agency after their successor takes office, Powell can legally hold on to his governor seat until 2027 if he chooses to.
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Bowman nomination narrowly passes Senate Banking Committee
The Senate Banking Committee advanced
Bowman, currently a Fed governor, is predicted to clinch an affirmative vote from the full Senate with support from trade groups like the Independent Community Bankers of American and The Financial Services Forum, as well as many Republican changemakers. Other nominations greenlit by the committee touch the Department of Housing and Urban Development and the Treasury.
"These nominees are not just capable but essential to our nation's prosperity," Senate Banking Committee Chairman Tim Scott, R-S.C., said in a statement. "Their roles demand accountability and expertise to protect American interests both at home and abroad."
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Current CFPB frontrunner McKernan tapped for Treasury opening
The revolving door to the top of the Consumer Financial Protection Bureau could spin once again, as current frontrunner Jonathan McKernan was nominated for a role at the U.S. Department of the Treasury this month.
McKernan is currently nearing the finish line to take office at the CFPB, but according to the Treasury Department is expected to also be nominated by President Donald Trump as its undersecretary for domestic finance, creating a regulatory quagmire as to which way McKernan will lean. McKernan has been working with the Treasury in an advisory capacity.
"During that time, McKernan has become an integral part of the Secretary's senior team. … His continued service at Treasury will ensure that his experience and expertise are best put to advancing the President's America First agenda," the Treasury Department said.
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Ousted NCUA member heralds Fed purge following his dismissal
Todd Harper, former chairman and board member of the National Credit Union Administration, is warning that his dismissal and that of his colleagues is a "test case" for further layoffs at the Federal Reserve.
"I think they're chipping away so that they can get to the Federal Reserve Board," Harper said to a crowd at the Brookings Institution on May 1. "And if you get to the Federal Reserve Board and start removing individuals, that affects monetary policy, and there are great risks to the economy, and [the NCUA, as well as] the Fed were set aside as independent for good reason … so I think they're using us as test cases."
Harper and
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