U.S. rate cuts became a central topic this week as the leading candidate to replace Federal Reserve Chair Jerome Powell signaled support for deeper reductions in 2026. The candidate also pushed for sweeping institutional changes at the central bank.
Elsewhere in Washington, D.C., the White House pushed back on a report alleging the president may have engaged in mortgage fraud in the 1990s, while a top official at the Consumer Financial Protection Bureau (CFPB) submitted his resignation.
In Congress, momentum for the bipartisan ROAD to Housing Act stalled despite recent progress, and industry groups are urging lawmakers to approve long-term authorization for a major national insurance program.
National Economic Council Director Kevin Hassett, widely viewed as the president’s preferred choice for Fed chair, has been vocal about his concerns regarding the central bank’s direction. He said during a recent event that political influence has infiltrated monetary policy in ways he finds unacceptable.
Speaking on Fox Business, Hassett cited repeated warnings from Fed officials about tariff impacts as evidence of political behavior. The Trump administration has long pushed Powell and the Fed to lower borrowing costs, raising questions about the institution’s future independence.
Hassett responded to skepticism over whether he could remain independent, saying he would rely on his judgment and resist partisanship. He added that he sees “plenty of room” for U.S. rate cuts in 2026, a stance that differs from the current Fed position following its latest 25-basis-point reduction.
A recent investigative report suggested the president may have rented out two Florida properties in 1993 despite classifying them as primary residences. The White House denied the claims, calling them politically motivated and insisting the president has never broken the law.
Michael Salemi, deputy enforcement director at the CFPB, resigned and warned of an ineffective future enforcement program. His departure follows moves by the administration to halt the agency’s investigative activities, with officials suggesting the bureau is on a path toward closure.
The ROAD to Housing Act, designed to relieve housing affordability pressures, was removed from the House’s latest NDAA draft. Lawmakers on both sides expressed disappointment but pledged to continue pursuing solutions in the coming year.
Fourteen major real estate, lending, and insurance organizations urged Congress to secure long-term approval for the National Flood Insurance Program. The program’s repeated short-term extensions, including the current one through January 2026, have caused significant disruptions to mortgage and commercial lending markets.
