Harvard is facing significant financial repercussions after rejecting the Trump administration's policy demands, GOP lawmakers are pushing back on proposed Medicaid cuts, and learn how to protect yourself from increasingly common "impostor" voice scams. Here's what else you might want to read this week:
"Powell Warns of 'Challenging Scenario' for Fed as Trade War Rages"
Tariffs could create a "challenging scenario" by increasing unemployment and inflation, forcing the Fed to choose between its dual mandates, Chair Jerome Powell said during a speech at the Economic Club of Chicago. While most Fed officials have said they don't know how they'd respond in such a scenario, Governor Christopher Waller indicated he'd favor cutting rates to support the labor market.
President Trump wasn't pleased by Powell's remarks, posting on social media that the Fed should be cutting rates along with other central banks. He wrote that "termination couldn't come fast enough" and that the Fed chair was "always TOO LATE AND WRONG."
"Texas Judge Throws Out CFPB's Credit Card Late Fee Rule"
A Texas judge ruled that the CFPB violated the CARD Act by capping credit-card late fees, handing a huge win to the banking industry, business groups, and the Trump administration.
"CFPB's Vought Wants to Strip Away 'Guidance' En Masse"
Speaking of the CFPB, acting Director Russ Vought accused the agency of substituting guidance for formal regulation under the Biden administration. Vought outlined several parameters for guidance, including proposing disclaimers that guidance isn't legally binding.
"Big Banks Alarmed After Their Regulator Gets Hacked"
JPMorgan, BNY Mellon, and Bank of America have dialed back electronic information-sharing with the OCC after the regulator disclosed a major cyberattack had compromised regulated institutions' highly sensitive financial information. The banks have expressed concerns not only about the breach itself, but also the OCC's delayed response to it.
"Democrats Alarmed Over Upheaval at Housing Regulator, Fearing Instability"
Democrat lawmakers are concerned that FHFA Director Bill Pulte's shakeup of Fannie and Freddie suggests the administration is pushing for a rushed exit from conservatorship, which could destabilize the housing market. On Tuesday, Senate Banking Committee Democrats asked the FHFA's Office of Inspector General to review Pulte's moves.
Earlier this week, I hosted Jaret Seiberg, managing director at TD Cowen, on Banking with Interest. Among other things, we discussed whether the administration can successfully accomplish GSE reform (and whether President Trump even wants to).
"Trump Fires Democratic Board Members of the Credit Union Watchdog"
President Trump abruptly fired two Democratic NCUA board members, raising concerns about the independence of the Fed and other regulatory agencies.
"They're Back: Fintech Banking Is Suddenly Advancing on Multiple Fronts"
Fintechs are regaining direct access to banking through state-chartered industrial bank models and acquisitions, signaling both disruption and opportunity for traditional banks.
Niche lending can help community banks differentiate themselves from the competition and diversify their portfolios, but to ensure sound underwriting, they must have internal expertise in the areas they target.
"Dimon Points to 'Turbulence,' Sees Uncertainty Persisting Through July"
JPMorgan's chief sees continued instability due to the Trump administration's tariff policies and called for a quick resolution of global trade tensions.
"Three Key Factors as Banks Manage CRE Risk in 2025"
CRE debt continues to weigh on bank balance sheets, with recession fears, tariff disruptions, and stalled interest rate cuts intensifying the risks. Many smaller banks are still strapped for capital, but some institutions are pursuing redevelopment deals and holding out hope for a reset of the market.
"Why Gen Z Hates Your Bank's Loan Payment Options, and 6 Ways to Fix Them"
Banks should revamp their loan repayment systems to win the loyalty of Gen Z customers, this article says. Review six strategies on how to improve their experiences.
"How Trump's Trade War Threatens Global Payment Growth"
President Trump's tariff and trade policies could slow U.S. card payment growth to 2.4% in 2025, down from 5% in 2024 and 6% in 2023.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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