February 28, 2026 / VOLUME NO. 407

Economic Stress

The Consumer Financial Protection Bureau — which supervises banks above $10 billion in assets — has cost American consumers upwards of $237 billion since it was established in 2011, according to a report published this month by the White House’s Council of Economic Advisers. High borrowing costs and reduced originations were the main contributors to the total. 

Two weeks earlier, an analysis by Senate Democrats said the Trump administration’s leadership of the agency had cost Americans up to $19 billion in 2025. The report cited dismissed enforcement actions and the rescission of guidance, including the overdraft rule and a planned cap on credit card late fees, which would have saved consumers up to $15 billion. 

The dueling narratives present two points of view that carry a partisan bent. The CFPB was the brainchild of Sen. Elizabeth Warren, who’s now the ranking Democrat on the Senate Banking Committee. She wants to protect the agency. Meanwhile, President Donald Trump has said he wants to dismantle the CFPB. 

As it is, the Bureau’s future remains unknown. Last year, Acting CFPB Director Russell Vought managed to cut the bulk of the agency’s staff, almost 1,500 employees, according to the U.S. Government Accountability Office. When the action was argued before the D.C. Circuit Court of Appeals this week, the attorney representing the CFPB employees’ union cited the consumer harm that could occur without CFPB cops on the beat.  

The agency was created as a direct response to the pain consumers experienced during the subprime mortgage crisis. Today, they’re again feeling strained. Just 28% would rate economic conditions as excellent or good, according to a Pew Research Center survey conducted in late January. Among their top concerns are the costs of healthcare (93%), prices for food and consumer goods (92%), housing costs (89%) and the price of electricity (85%). 

Americans clearly feel stressed about affordability. What’s unclear is how Washington will act.

• Emily McCormick, vice president of editorial & research for Bank Director

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