The Director of the Office of Management and Budget (OMB) will be attending the Cabinet Meeting, which will be held at the White House in Washington, DC, USA on April 10, 2025.
Nathan Howard | Reuters
Federal Reserve inspectors are considering the Trump administration’s attempt to fire almost every Consumer Financial Protection Agency employee and cancel agency contracts, CNBC learned.
The inspector’s office told Sen. Elizabeth Warren and Sen. Andy Kim, DN.J., that they are receiving requests to investigate new leadership moves for consumer agencies, according to a June 6 letter seen by CNBC.
In response to previous requests from lawmakers, “We had already begun work to consider cutting the workforce at the CFPB,” Attorney General Fred Gibson said in the letter. “We are expanding that work to include CFPB’s cancelled contracts.”
The letter confirms that the US government’s main surveillance arm is investigating a whirlwind of activity at the station after Trump’s acting CFPB head took over in February. Vought told employees to stop work, but he and Elon Musk’s government efficiency operatives fired most of the agency’s staff and tried to terminate contracts with external providers.
That led Warren and Kim to ask the Fed inspectors and the government’s accountability department to consider the legality of Vought’s actions and the extent to which they hindered the CFPB’s mission. GAO told lawmakers in April that they would look into the issue.
“As Trump dismantles important public services, an independent OIG investigation is essential to ensure that he understands the damages this administration has done at the CFPB and is able to carry out his mission to work on behalf of people, hold businesses that try to take responsibility and take responsibility,” KNBC said in a statement.
The Fed IG Office acts as an independent watchdog for both the Fed and CFPB, and has the authority to issue agency records, subpoenaes and examine interviewers. You can also introduce criminal matters to the Department of Justice.
Shortly after taking office, Trump fired more than 17 inspectors across federal agencies. For that purge, Michael Horowitz, Department of Justice IG since 2012, was named the next watchdog for the Fed and CFPB this month.
Horowitz, which begins with a new role later this month, is reportedly praised by Trump supporters for revealing issues regarding the handling of a investigation into Trump’s 2016 campaign.
Meanwhile, the fate of the CFPB depends on a looming decision from the federal court of appeals. The judge temporarily suspended Vought’s efforts to fire employees, but is now considering the Trump administration’s appeal against the agency’s plans.
