President Donald Trump has axed Rohit Chopra, Director of the Consumer Financial Protection Bureau, in a sharp change within the U.S. regulatory landscape for finance. Chopra, who had run the agency since 2021, confirmed his exit in a public letter but said he was still hopeful that the CFPB continued to protect consumers.
He initiated aggressive, activist regulatory activity when he prevented companies from erasing medical debt on credit reports or limiting fees they can impose to overdraft account balances-a better financial climate for consumers, his critics believe. While these have been salutes from consumer-friendly liberal-leaning advocacy groups praising consumer protectionism, Chopra remains a hot issue with regulators because of “financial industry interests arguing that these rulemakings represented overregulation.”
Following his dismissal, financial sector critics expressed relief, believing his policies were harmful to business growth. Conversely, Democrats like Sen. Elizabeth Warren and Rep. Maxine Waters supported Chopra’s efforts and criticized his firing, viewing it as detrimental to consumer protection efforts.
In other news, the U.S. Senate confirmed Scott Bessent, a 62-year-old billionaire hedge fund manager, as the new Treasury Secretary under President Trump. Bessent, a strong supporter of Trump’s economic agenda, is expected to manage the nation’s $28 trillion Treasury debt market and oversee fiscal policy, financial regulations, and international sanctioning
