Senate Banking Committee Questions Four Trump Economic Nominees on CFPB, Housing and Export Controls

The Senate Banking Committee on a confirmation hearing considered four White House nominees who would oversee key economic, housing and national-security-related financial functions. Committee members examined the nominees' plans for the Consumer Financial Protection Bureau (CFPB), housing finance policy and export-control enforcement, and asked how each nominee would follow existing statutes if confirmed.

Chairman Tim Scott opened the hearing by urging the panel to confirm the nominees and criticizing the prior administration’s spending, saying it had inflicted "severe damage" and citing inflation’s impact on working families. Ranking Member Elizabeth Warren and other Democrats pressed nominees on the CFPB’s staffing and legal obligations, while Republican senators focused on deregulation, housing finance reforms and export controls aimed at China.

Nominees and opening themes Dr. Moran (Council of Economic Advisers nominee), who described his background in academic and market economics, said his advice would emphasize ‘‘leaning against the wind’’ — using stimulus when the economy is weak and restraining it when it overheats. He outlined five priorities he would recommend to reindustrialize the United States: cutting regulations that slow construction and hiring, further tax reform, strategic tariffs to address unfair trade, workforce skilling for modern manufacturing and defense‑driven industrial policy.

Commerce Department nominee Mr. Kessler, tapped for the undersecretary role at the Bureau of Industry and Security (BIS), described BIS as critical to preventing exports that could enhance an adversary’s military capabilities. He cited the 2018 Export Control Reform Act and said BIS must be "nimble" and use the full range of enforcement tools, including penalties and interagency cooperation.

William Pulte, nominated to lead the Federal Housing Finance Agency (FHFA), emphasized his private‑sector housing experience and said the FHFA must preserve the ‘‘safety and soundness’’ of housing finance as the agency plans any eventual exit from conservatorship of Fannie Mae and Freddie Mac. Pulte pledged to "follow the law and follow the statute" on statutory funds and programs and said he would examine programs such as the Housing Trust Fund and the Capital Magnet Fund if confirmed.

Jonathan McKernan, the CFPB director nominee, repeatedly told senators that if confirmed he would "follow the law" and perform the CFPB’s statutorily assigned functions. Under questioning, McKernan said the bureau must enforce federal consumer financial laws "fully and faithfully," and he committed to maintaining functions that are specifically mandated by statute, including consumer complaint processing and offices for service members and for older Americans.

Points of contention and committee questioning CFPB staffing and activity: Democrats pressed McKernan about reports that the CFPB’s work had been limited by recent administration decisions. Ranking Member Warren said the committee should have allowed more time for nominee questioning and raised concerns that the agency had been told to shut down offices and halt enforcement activities; she cited the CFPB’s consumer restitution record and warned that ceasing enforcement would primarily benefit large financial firms and fraudsters. McKernan responded that he would need advice about the specifics but repeated his pledge to follow statutory duties and restore mandatory functions.

Statutory duties: Senators repeatedly cited provisions of the Dodd‑Frank Act, including section 1021 (the CFPB’s statutory mission) and section 1013 (the consumer complaint database requirement), asking whether the nominee would maintain those functions. McKernan said the statutory provisions are mandatory and that he would carry them out.

Housing finance and conservatorship: Senators from both parties pressed Pulte on policies affecting mortgage costs and the possible end to conservatorship of Fannie Mae and Freddie Mac. Senator Rounds asked whether Pulte would support preserving and expanding the credit risk transfer (CRT) market, which Rounds described as a reform that has attracted private capital since 2013 and helps protect taxpayers. Pulte said he would work to "take risk away from the taxpayers and give it to the private market" and would review FHFA programs and funding if confirmed.

Appraisal bias and affordable housing: Senators raised appraisal bias and how FHFA could play a role in addressing disparities that reduce wealth accumulation for Black and Latino homeowners. Pulte said he would review agency data and work with senators on the issue, but he declined to give a definitive public‑data commitment without first getting inside the agency.

Export controls and enforcement: Republican senators questioned Mr. Kessler about enforcement gaps exposed by recent reporting on semiconductor exports to China. Kessler said BIS must use its civil and criminal enforcement authorities, coordinate with intelligence and defense agencies and ensure rules are targeted at the challenges posed by adversaries seeking sensitive technologies.

Enforcement metrics and restitution: Several senators sought a simple assessment of past CFPB enforcement outcomes, including the bureau’s restitution numbers. McKernan said restitution and making consumers whole are important remedies but cautioned against evaluating the bureau solely on dollar‑amount metrics; he emphasized the need to balance remedies with fair processes and consistent application of the law.

Procedure and next steps Throughout the hearing senators requested additional information for the record. Multiple senators indicated they would submit written questions. No formal committee votes were recorded during the session; senators focused on extracting nominees' views and herding responses around statutory obligations, agencies’ missions and the nominees' approaches to enforcement, housing finance, export controls and economic policy.

The committee will consider further questions for the record and may move to scheduling a committee vote at a later date.