Powell and Warren Discuss CFPB's Role as Only Federal Regulator for Big Banks in Senate Hearing

During a recent Senate hearing, Federal Reserve Chair Jerome Powell engaged in a heated exchange with Senator Elizabeth Warren regarding the Consumer Financial Protection Bureau (CFPB). Powell emphasized that without the CFPB, there would be no federal regulator overseeing big banks' compliance with consumer protection laws. Warren supported this claim, stating that the absence of the CFPB would leave consumers vulnerable to exploitation by large financial institutions. In contrast, Republican Senator Pete Ricketts argued that state banking departments also provide consumer protection, countering the notion that the CFPB is the sole guardian of banking consumers. Powell's testimony underscored the critical role of the CFPB in maintaining oversight of the banking sector, a point echoed by various financial advocacy groups following the hearing.