CFPB Shifts Priorities: A New Focus Amid Controversy

The U.S. Consumer Financial Protection Bureau (CFPB) will halve its financial services inspections, concentrating on military threats and moving away from areas such as student loans and digital payments. Despite President Trump's earlier call for its closure, the agency plans a major shift in focus and operations.

The U.S. Consumer Financial Protection Bureau (CFPB) is set to reduce its inspections by 50%, directing its efforts towards protecting military personnel and their families. This move signals a shift away from traditionally emphasized areas like student loans, medical debt, digital payments, and consumer data, according to an internal memo dated Wednesday.

This redirection occurs amidst political pressure to dissolve the agency entirely, despite earlier commitments from President Donald Trump and billionaire Elon Musk, tasked with overseeing governmental cost reductions. CFPB's new priorities showcase a fundamental shift as the bureau pivots from its previous focus and adjusts its enforcement strategies.

Notably, the CFPB will prioritize supervision of the largest banks over nonbank institutions, which have predominated in attention in recent years. This reorientation of its resources, while controversial, reflects a strategic move to realign the bureau's core objectives as political dynamics evolve.

(With inputs from agencies.)