Fed gov pushes for aggressive rate cut; CFPB to ‘close down’
Stephen Miran warns of an “urgent” need for cuts — and wants the Fed to go big at its next meeting. Plus, a key housing bill advances; CFPB nears its final days
Key points:
- Fed Governor Stephen Miran thinks the board should cut interest rates by 50 basis points at its October meeting, though a 25-point cut is more likely.
- The Trump administration is working to “close down” the CFPB, according to the OMB director — a process that could wrap up within the next three months.
- Though the government shutdown continues to drag on, the Senate has advanced housing legislation backed by many industry advocates.
This week in Washington, D.C., another Federal Reserve official is speaking out about rate cuts, while attention is also turning to Fed Chair Jerome Powell — and who will replace him when his term ends next year.
Meanwhile, the federal government shutdown is stretching on after a 10th vote to pass a continuing resolution failed on Oct. 16. While furloughed federal workers typically return to work once a shutdown ends, the Trump administration is attempting to make permanent cuts at some agencies — including the Consumer Financial Protection Bureau (CFPB).
New Fed governor backs 50-point rate cut
Stephen Miran, who joined the Fed's Board of Governors last month, told Fox Business on Oct. 16 that while he expects a short-term interest rate cut of 25 basis points during the Fed's Oct. 28-29 meeting, "My view is that it should be 50."
Miran cited U.S.-China trade tensions, saying it is "even more urgent that we get to a more neutral place in policy quickly" while at CNBC's "Invest in America Forum" on Oct. 15. He acknowledged that his stance is "out of consensus" with other Fed governors who have taken a more cautious approach, despite growing concerns about the labor market.
Miran said he expects the year to end with short-term interest rates 75 basis points lower than at the start of 2025. The Fed made its first rate cut of the year during its September meeting.
Another unknown at the central bank is who will be chosen to replace Powell when his term as Fed chair ends in May 2026. Treasury Secretary Scott Bessent, who has been crafting a list of candidates for months, now has a shortlist of five, according to CNBC. Bessent reportedly plans to present Trump with the list after Thanksgiving.
Trump administration working to 'close down' CFPB
Uncertainty has clouded the CFPB since Trump returned to the White House in January — and now the bureau appears to be nearing its end.
Russell Vought, director of the U.S. Office of Management and Budget, said during an Oct. 15 appearance on "The Charlie Kirk Show" that few workers are left "doing statutory responsibilities while we close down the agency," a process that he estimated will take two to three months.
The CFPB was created after the 2008 financial crisis as an independent agency aimed at providing consumer protection in the financial marketplace. While many Democrats argue that the CFPB still performs vital functions, some Republicans have pushed to defund the CFPB in recent years, alleging that its existence represents wasteful government spending.
ROAD to Housing Act advances as shutdown continues
On Oct. 10, the Senate advanced the ROAD to Housing Act, legislation that housing advocates widely support. The newest version of the bill must also pass in the House of Representatives before it can move forward.
While the National Association of Realtors applauded the bill's advancement, the organization remains critical of the government shutdown, which has now stretched into its third week.
As the impasse drags on, "the consequences for the housing market and the broader economy grow more serious by the day," NAR Executive VP and Chief Advocacy Officer Shannon McGahn wrote last week in HousingWire.
Some of those consequences could be exacerbated by permanent staff cuts. Around 442 Department of Housing and Urban Development staff members were terminated last week, according to a legal filing obtained by Politico. The firings, which a judge has temporarily blocked, are part of the Trump administration's wider efforts to reduce the federal workforce. Vought said cuts will continue throughout the shutdown.