Jonathan McKernan, originally nominated to lead the Consumer Financial Protection Bureau, is now being put forward for a senior role at the Treasury Department, it was announced today, raising questions about the future leadership of the consumer watchdog agency amid ongoing turmoil.
Driving the news: Treasury Secretary Scott Bessent announced this afternoon that President Trump intends to nominate McKernan to serve as Undersecretary of Domestic Finance. McKernan had been awaiting a Senate vote on his nomination to serve as CFPB Director since the Senate Banking Committee approved it on March 6.
- While the Treasury’s statement stopped short of confirming a formal withdrawal of McKernan’s CFPB nomination, a White House official told Reuters that McKernan will no longer be under consideration for the CFPB role.
- “His continued service at Treasury will ensure that his experience and expertise are best put to advancing the President’s America First agenda,” the statement said.
- McKernan has been working as an advisor at Treasury while awaiting confirmation and reportedly became a key part of Secretary Bessent’s senior team.
Context: McKernan’s nomination to head the CFPB had been in limbo for months, with Senate Banking Committee Chair Tim Scott [R-S.C.] signaling in April that a vote on his nomination would be delayed until the CFPB was “right-sized.” A federal judge has temporarily blocked a Trump administration plan to shrink the agency’s workforce from roughly 1,700 to just 200 employees.
Between the lines: McKernan has been viewed as a White House favorite for financial regulatory roles. He previously served on the FDIC Board of Directors, held senior posts at the Federal Housing Finance Agency and Treasury, and was a policy advisor to former Sen. Bob Corker [R-Tenn.].
- His shift to the Treasury role suggests the administration may be rethinking its strategy for reshaping the CFPB, which has already seen significant leadership turnover, lawsuits, and pushback from courts and Congress.
What’s next:
