A memo to Consumer Financial Protection Bureau staff outlines a plan to reduce the agency's inspections by half, focus on fighting fraud against consumers, and direct most of its supervisory efforts toward banks and other deposit-taking firms. Consumer Bankers Association President and CEO Lindsey Johnson said CBA will assess how the changes will affect retail banks, adding that CBA is "fully committed to working with the administration to advance commonsense policies that protect and expand access to the highly competitive financial services marketplace."

The Consumer Financial Protection Bureau is undergoing a reduction in force that will affect about 1,500 of its workers, leaving the agency with around 200 employees, sources said. Acting Director Russell Vought says the layoffs are necessary to align the CFPB's operations with its new priorities. The move follows a federal appeals court decision allowing the layoffs after a lower court blocked them.

Pay-by-bank has the potential to transform US payments by simplifying transactions for consumers and lowering costs for merchants, but widespread adoption requires buy-in from banks, merchants and consumers, Deloitte says in a report. Banks could offer rewards similar to those provided via credit cards to make pay-by-bank more appealing to consumers, and merchants must be able to easily integrate pay-by-bank with existing systems, the report says.

American Express reported a first-quarter increase of 6% in transaction volumes, and millennial and Generation Z customers were instrumental in driving that growth, increasing their spending by 14% in Q1, contrasting with more cautious spending by Gen X and baby boomers. AmEx also has seen little indication that its affluent cardholders are reducing how much they spend, Chief Financial Officer Christophe Le Caillec said.

The Federal Reserve has proposed changes to stress tests for major banks, including averaging results over two years and providing banks an additional three months to adjust to capital requirements. The move aims to make the process more transparent and less volatile. Governor Michael Barr criticized the proposal, warning it could create a false sense of security, while Governor Adriana Kugler backed the plan but raised concerns about reduced responsiveness to current economic conditions. Public comments are due 60 days after publication of the proposal in the Federal Register.

President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, posting on social media that "Powell's termination cannot come fast enough" and urging immediate rate cuts amid tariff-driven economic uncertainty. The remarks reignite concerns over central bank independence, with Powell warning of inflation risks from trade policy, adding that the Fed's "independence is a matter of law" and that the Fed's statute does not allow the chair's removal "except for cause."

Banks are increasingly lending to nonbank lenders amid sluggish overall loan growth. The strategy allows banks to manage risk better and free up capital for more profitable activities, but regional banks without trading arms face challenges in maintaining profitability.

Global Payments has acquired Worldpay for $24.3 billion, buying a 45% stake from Fidelity National Information Services and a 55% stake from private equity firm GTCR. Global Payments also has agreed to sell its issuer-solutions business to FIS for $13.5 billion. The acquisition of is a significant move in the M&A market, which had been relatively dormant amid economic uncertainties from US tariff policies.

Treasury Secretary Scott Bessent is leading private meetings with the Federal Reserve and other banking agencies to streamline oversight and ease regulation. These efforts follow a February executive order from President Donald Trump aimed at tightening White House control over bank supervision. Bessent has emphasized coordination among regulators without consolidating agencies, but former Federal Reserve attorney Jeremy Kress has described the Treasury's actions as a "power grab" that could politicize financial regulation.