Hearings to examine the nominations of Stephen Miran, of New York, to be Chairman of the Council of Economic Advisers, Jeffrey Kessler, of Virginia, to be Under Secretary of Commerce for Industry and Security, William Pulte, of Florida, to be Director of the Federal Housing Finance Agency, and Jonathan McKernan, of Tennessee, to be Director, Bureau of Consumer Financial Protection.

Banking, Housing, and Urban Affairs Committee

2025-02-27

Summary

This committee hearing focused on the nominations of Dr. Stephen Myron for the Council of Economic Advisers, Mr. Kessler for Undersecretary of Commerce for Industry and Security, Mr. William Pulte for Director of the Federal Housing Finance Agency, and Mr. Jonathan McNernan for the Consumer Financial Protection Bureau (CFPB)[ 00:00:42 ] [ 00:07:04-00:07:12 ]

[ 00:07:31-00:07:38 ] [ 00:08:49-00:08:58 ] [ 00:09:43-00:09:56 ] . Opening statements highlighted concerns over economic damage from past spending and current administrative actions impacting various sectors, setting a contentious tone for the discussions[ 00:05:36-00:06:22 ] [ 00:11:32-00:11:38 ] .

Themes

Economic Policy and Inflation

Senator Scott attributed recent inflation to the previous administration's "reckless spending," citing significant price increases in groceries, energy, and transportation[ 00:05:36-00:06:22 ] . Dr. Myron, the nominee for the Council of Economic Advisers, concurred that past stimulus measures were an "economics 101 style error" for not "leaning against the wind" during economic recovery. He committed to advising policies that promote fiscal responsibility and pro-growth measures, including tax reforms and strategic tariffs[ 00:07:12 ]

. Senator Warren countered that the current administration's promises to lower costs had not materialized, with inflation remaining a concern for families[ 00:11:32-00:11:38 ] . Dr. Myron defended the use of tariffs by explaining that historical data shows periods of high tariffs coinciding with strong economic growth in the U.S., challenging conventional economic views.

CFPB and Consumer Protection

The CFPB's role and future were a central point of contention, with Senator Scott criticizing the agency for "overstepp[ing] its authority" under the previous administration, leading to excessive regulation and increased consumer costs[ 00:09:21-00:09:35 ]

. Mr. McNernan, the CFPB nominee, expressed a commitment to refocusing the agency on its core mission and ensuring accountability. Senator Warren accused the current administration of trying to "sideline" the CFPB and highlighted the agency's success in returning over $21 billion to consumers through enforcement actions. She pressed Mr. McNernan on his commitment to upholding the CFPB's statutory obligations, including maintaining its consumer complaint hotline and specialized offices, which he affirmed he would do[ 00:38:09-00:38:18 ] [ 00:39:16-00:39:19 ] . There was a notable debate about Mr. McNernan's reluctance to acknowledge the CFPB's past achievements, such as the $20 billion returned to consumers, as unequivocally "good," emphasizing instead the importance of fair regulation over raw numbers.

Housing and FHFA

Senator Scott stated that home ownership had become unaffordable under the previous administration and expressed hope that Mr. Pulte, the FHFA nominee, would address the "broken housing system"[ 00:08:04-00:09:13 ]

. Senator Warren raised concerns that privatization of Fannie Mae and Freddie Mac could benefit billionaires and increase housing costs for American families. Mr. Pulte, with extensive experience in the housing industry, emphasized his commitment to strengthening the housing finance system, ensuring its safety and soundness, and preventing another crisis like 2008[ 00:29:02-00:29:24 ] . He also highlighted his work in blight removal and supporting homeownership for all Americans[ 00:29:40-00:29:59 ] . Senator Kennedy criticized current policies for allowing borrowers to take on excessive debt, potentially leading to increased defaults and a housing "house of cards," which Mr. Pulte committed to addressing.

Export Controls and China

Senator Scott stressed the importance of technological superiority for American economic dominance and asked how export controls would be used to counter China's acquisition of U.S. technologies[ 00:33:24-00:33:42 ]

. Mr. Kessler, the nominee for Undersecretary of Commerce for Industry and Security, affirmed that export controls are a "critical tool" for maintaining technological leadership and preventing sensitive technologies from falling into adversarial hands. He noted China's rapid advancements in critical technologies like AI and quantum computing as a significant threat[ 00:23:32-00:23:52 ] . Mr. Kessler committed to robust enforcement of export controls, integrated investigations, and a focus on national security priorities. He also acknowledged the need for BIS to be nimble and keep pace with sophisticated adversaries while expressing concern about potentially inadequate enforcement resources[ 01:49:09-01:49:27 ] .

Regulatory Reform/Deregulation

Dr. Myron advocated for slashing regulations that impede building and hiring, arguing that excessive compliance burdens disadvantage small businesses and reduce competition. Mr. Pulte echoed this sentiment, stating that regulations often work inversely to housing supply and supporting efforts to reduce "useless regulations". Senator Kennedy suggested that deregulation is a preferable alternative to recession for bringing down prices, an idea Dr. Myron supported, linking reduced barriers to increased production and lower costs. Mr. McNernan criticized the practice of "regulating by enforcement" at the CFPB, calling it a violation of due process and fairness, and stressed the importance of thorough cost-benefit analysis for new rules.

Tone of the Meeting

The meeting's tone was largely polarized and confrontational, particularly in exchanges concerning the CFPB and the economic policies of past and present administrations[ 00:05:36-00:06:22 ] [ 00:11:32-00:11:38 ]

. Republican senators generally criticized the previous administration's spending and regulatory overreach, advocating for deregulation and expressing support for the nominees' approaches to economic and housing policy[ 00:09:21-00:09:35 ] . Democratic senators, however, voiced deep concern over alleged attempts to dismantle critical consumer protections and questioned the nominees' commitment to upholding their agencies' mandates, often engaging in sharp, pointed questioning that nominees struggled to answer directly. While some brief moments of bipartisan agreement on general goals, like effective export controls or addressing housing needs, emerged, these were frequently overshadowed by ideological divides and strong political rhetoric[ 01:41:39-01:41:47 ] .