K
evin Hassett, the National Economic Council director, is widely viewed as President Trump’s preferred successor to Fed Chair Jerome Powell. In recent interviews he warned that the Federal Reserve’s recent actions appear politically driven and pledged to keep the central bank nonpartisan. Hassett said the Fed still has room for rate cuts in 2026, but after a 25‑basis‑point cut on December 10 the committee signaled a shift toward tightening.
The White House has dismissed a ProPublica report that alleged Trump committed mortgage fraud in the 1990s. The investigation examined two Palm Beach properties listed as primary residences but rented out in 1993. A White House spokesperson called the claim “a desperate attempt by the left‑wing media to tarnish the president with false allegations” and asserted that Trump has never broken the law.
Michael Salemi, the CFPB’s principal deputy enforcement director, announced his resignation. Salemi said the agency’s future enforcement program is untenable under the current administration’s plan to curtail investigations. His departure comes as the Trump administration pushes to shut down the bureau, a move the Office of Management and Budget has already begun.
The bipartisan ROAD to Housing Act, which aimed to improve housing affordability, was removed from the House’s National Defense Authorization Act draft after passing the Senate. House Financial Services Chairman French Hill said lawmakers will seek other solutions and will work with the Senate to present a bill that reflects both chambers’ views. Senators Tim Scott and Elizabeth Warren criticized the removal, with Scott urging the bill to reach the floor and Warren warning that her party would pass it if they regain control of Congress.
Fourteen trade groups—including the American Bankers Association, Mortgage Bankers Association, and National Association of Realtors—have urged Congress to secure long‑term authorization for the National Flood Insurance Program (NFIP). The program’s current extension expires on January 30, 2026, and its lapse during the recent shutdown disrupted mortgage and commercial lending. The groups called for the longest possible extension to avoid further disruption.
