U.S. Financial Regulatory Week Ahead

Aug 29

Congress Returns to Work, Senate Banking Holds Miran Fed Confirmation As the Fight over Firing Fed Governor Cook Heats Up

September 1 - 5, 2025

The last days of summer are here as we head into the Labor Day weekend in advance of Washington roaring back to life on Tuesday as Congress returns to work after its August recess. And the future of the Federal Reserve will dominate the week ahead.

The legal and political battle over whether President Trump can fire Federal Reserve Board Governor Lisa Cook continues to heat up. Cook filed suit to block the move and a federal judge held a hearing on Friday. In advance of the hearing, Federal Housing Finance Agency Director Bill Pulte tweeted out a new allegation against Cook, claiming she may have made false representations on a third property, and he was making yet another criminal referral on Cook’s mortgages to the Justice Department. As to why Pulte is choosing to use Twitter as the way to deal with this important situation is anyone’s guess. No previous FHFA Director has ever done something like this publicly before. But his actions are drawing increasing criticism, and we suspect that when Congress gets back next week, there will be a lot said from leading members about him.

There is little doubt the Cook case is going to go all the way to the Supreme Court – which is going to take time, and she is not going to step away until it is settled – which means, markets should expect her to be voting on interest rates at the September Fed meeting on interest rates.

Meanwhile, the Senate Banking Committee will be holding a confirmation hearing on Thursday for Stephen Miran’s nomination to fill out the remaining months of Fed Governor Adriana Kugler’s term (which ends in January). Senate Democrats are demanding that the hearing be held up until the Cook situation is settled, but that is not going to happen. We suspect Miran will likely be confirmed by the full Senate by early October.

Otherwise, there is not a lot going on publicly in Congress or among the regulators. We hope you have a great Labor Day weekend. Please let us know if you have any questions.

U.S. Congressional Hearings

U.S. Senate

· Thursday, September 4, 10:00 a.m. – The Senate Banking Committee will confirmation hearings for Ben Hobbs, to be Assistant Secretary, Department of Housing and Urban Development; Ronnie Kurtz, to be Assistant Secretary, Department of Housing and Urban Development; Dr. Stephen Miran, to be a Member, Board of Governors of the Federal Reserve System; Mr. Christopher Pilkerton, to be Assistant Secretary, Department of Treasury; and Jonathan Burke, to be Assistant Secretary, Department of Treasury.

House of Representatives