WASHINGTON—Ahead of some panel discussions on behavioral economics the CFPB recently hosted, the Bureau’s director, Kathy Kraninger, said all policymaking must first be subject to a cost/benefit analysis. In her opening remarks, she also emphasized the need to preserve consumer choice when developing policies and rulemakings.
Before the recent panel discussions, Kraninger said under her directorship the CFPB is seeking to craft consumer protection policy by adhering to its statutory objectives to ensure consumer access to fair, by supporting transparent and competitive markets, and by articulating clear rules to follow so the CFPB can achieve those objectives.
“It is also generally well understood—and there is overwhelming evidence that demonstrates this – that markets allocate resources more efficiently than government agencies,” Kraninger said. “That is why the presumption should be in favor of the market and the onus should be on government to demonstrate it can improve the status quo. For consumer protection policy specifically, the Bureau generally seeks to empower consumers to make the best decisions for themselves.”