Trump Appoints Treasury Secretary Bessent as Acting CFPB Director

Treasury Secretary nominee Scott Bessent testifies before the Senate Committee on Finance in Washington on Jan. 16, 2025. Madalina Vasiliu/The Epoch Times

President Donald Trump has named Treasury Secretary Scott Bessent to serve as the acting director of the Consumer Financial Protection Bureau (CFPB) in place of Rohit Chopra, who announced his departure from the agency over the weekend.

Bessent’s appointment took effect on Jan. 31, according to a Feb. 3 announcement from the CFPB.

“I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth,” Bessent said in a statement.

The founder of global macro investment firm Key Square Group, Bessent was confirmed as the 79th treasury secretary on Jan. 27 in a 68-29 Senate vote, with 16 Democrats backing his nomination.

He has been a vocal proponent of Trump’s economic policies, which emphasize curbing inflation, boosting energy production, cutting taxes, and imposing tariffs to reduce trade deficits.

Chopra’s resignation was formally announced on Saturday. In his departure letter to Trump, Chopra underscored the agency’s role in protecting consumers from financial industry abuses, cracking down on junk fees, addressing medical billing errors, and limiting data broker surveillance.

“I hope that the CFPB will continue to be a pillar of restoring and advancing economic liberty in America, and I wish you good luck in serving our great country,” wrote Chopra, who was appointed by President Joe Biden and championed a more aggressive approach to consumer protection.

Chopra also highlighted CFPB policies aimed at preventing financial firms and tech companies from denying services based on political or religious views, possibly referencing Republican concerns over financial deplatforming.

It’s unclear when Trump will nominate a permanent CFPB director, a position that needs Senate confirmation. The White House did not respond to a request for additional information about the president’s plans for the post.

Since the CFPB’s creation in 2011, Republicans and others have criticized the agency as unaccountable and prone to overreach. In 2019, House Republicans sued to challenge the CFPB’s constitutionality, arguing that its leadership structure violates the separation of powers.

In June 2020, the U.S. Supreme Court agreed, ruling the agency’s structure unconstitutional but allowing it to continue operating, with the director now subject to removal by the president at will.

Some in Trump’s circle have questioned the CFPB’s existence, with Elon Musk, head of Trump’s government efficiency initiative, calling for its abolition. Musk argued on social media platform X that the agency is redundant and should be eliminated.

Democrats and others—including some Republicans—have defended the CFPB as a vital safeguard against corporate misconduct, crediting it with returning billions of dollars to consumers through enforcement actions and regulatory oversight.

Sheila Bair, who chaired the Federal Deposit Insurance Corporation (FDIC) from 2006 to 2011, wrote in an op-ed in Financial Times in mid-December that Musk’s call to abolish the agency is misguided.

“Since its creation in 2010, this tiny agency has restored housing market stability, after reckless lending by largely unregulated mortgage brokers brought the U.S. economy to its knees,” Bair wrote.

“With a budget of less than $700 million, or about 0.01 percent of the federal budget, the CFPB has been giving Americans good bang for their buck.”