The Trump administration is expecting the Federal Reserve to support any economic growth resulting from corporate tax cuts included in the Republican tax bill. The Fed is projecting three interest rate hikes next year but could increase that number to four if inflation picks up as a result of tax cuts, economists say.
The resignation of Consumer Financial Protection Bureau Director Richard Cordray is unlikely to affect a court case challenging the constitutionality of the bureau, says lawyer Richard Andreano Jr. CBA President and CEO Richard Hunt and others who think a bipartisan commission should run the CFPB have criticized the single-director structure.
Conduent Business Services, formerly known as Xerox Business Services, has been fined $1.1 million by the Consumer Financial Protection Bureau for software errors. These errors led to the submission of incorrect information about more than 1 million consumers to credit reporting agencies.
Regulation prevents smaller banks from competing with larger ones, says Keith Noreika, outgoing head of the Office of the Comptroller of the Currency. "Ironically, the progressives who sit there and say 'Absolutely no how, no way we're going to raise the $50 billion limit' are acting as the sponsors for the megabanks to keep them in that privileged position," Noreika said.
Federal Reserve Governor Jerome Powell met with Treasury Secretary Steven Mnuchin, Senate banking committee Chairman Mike Crapo and bank executives in the months leading up to his nomination as chairman of the central bank, according to Powell's calendar. The executives included Wells Fargo CEO Timothy Sloan, JPMorgan Chase CEO Jamie Dimon, Goldman Sachs President Harvey Schwartz and Deutsche Bank CEO John Cryan.
Heavy revision is expected for a Republican tax plan passed by the Senate Finance Committee because several measures have raised concerns on both sides of the aisle. Passage of a tax bill is unlikely before winter because "complicated issues," such as the estate tax and state and local taxes, need resolution, says Greg Valliere, chief global strategist at Horizon Investments.
Repealing the legal requirement that most Americans buy health insurance might not generate the savings Republicans want to offset tax cuts. Only 7% of Americans who purchase insurance from the individual market will skip coverage if the mandate is eliminated, according to a survey by the Kaiser Family Foundation.
Baby boomers are the country's wealthiest generation yet, having accumulated an estimated $20 trillion to $30 trillion, according to the Boston College Center on Wealth and Philanthropy, but the younger generations must not expect all of this wealth to be passed along. Baby boomers are enjoying longer lives than previous generations, allowing them more time to work but also more time to spend money both in enjoying their retirement and on rising health care costs and other expenses.
The anti-regulatory environment President Donald Trump touted during his campaign is taking steps forward with the departure of Richard Cordray from the Consumer Financial Protection Bureau, confirmation of Joseph Otting as comptroller of the currency and potential changes to the Dodd-Frank Act. Regarding Cordray, FSR President and CEO Tim Pawlenty said, "The Trump Administration and Congress should use this opportunity to improve the CFPB by adding a bipartisan board so key decisions are made in a bipartisan and transparent manner with more than just one person involved."
The resignation of Consumer Financial Protection Bureau Director Richard Cordray gives the Trump administration an opportunity to reverse problems that arose from the creation of an independent agency that has no congressional oversight, writes Dennis Shaul, CEO of the Community Financial Services Association of America. The authors of the Dodd-Frank Act intended the CFPB to be an impartial arbiter protecting consumers, but the agency has become "a politically biased regulatory dictator," he writes.