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Home News Trump’s New Consumer Watchdog Freezes CFPB Operations On First Day

Trump’s New Consumer Watchdog Freezes CFPB Operations On First Day

by Celia

Scott Bessent, President Donald Trump’s new acting consumer finance watchdog, froze nearly all operations of the U.S. Consumer Financial Protection Bureau (CFPB) on his first day in office. Bessent, who assumed the role on Monday, ordered a halt to investigations, rule-making, litigation, and public communications at the agency, according to an email obtained by Reuters.

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This decision marks a sharp shift in policy under Trump, who campaigned on reducing government regulation to benefit industries. Bessent, who now holds leadership positions at both the Treasury and CFPB, replaced Rohit Chopra, the former CFPB director who was fired just days earlier. Chopra had been known for aggressive enforcement of financial regulations under the previous administration.

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In a message sent at 11 a.m. local time, Bessent instructed all CFPB staff and contractors to stop current activities “to align with the goals of the administration.”

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Following the announcement, the agency’s attorneys told a U.S. Court of Appeals that they would seek to pause ongoing legal proceedings.

The move has drawn sharp criticism from Senator Elizabeth Warren, a key architect of the CFPB, which was established after the 2008 financial crisis. Warren, who chairs the Senate Banking Committee, condemned Bessent’s decision, calling it an invitation for “predatory corporate misconduct.”

“Halting enforcement actions that could return money to working people goes against President Trump’s promise to lower costs for families,” Warren said. “So far, he has done little to deliver on that claim.”

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