SENATE COMMITTEE ON BANKING, HOUSING, & URBAN AFFAIRS
NOMINATION HEARING
For questions on the note below, please contact the Delta Strategy Group team.
On June 25, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the nomination of:
- Dr. Christopher Phelan, to be Chairman of the Council of Economic Advisers (CEA)
- John Crews, to be a Member of the National Credit Union Administration (NCUA)
- Jeffrey Ledbetter, to be Inspector General, Department of Housing and Urban Development
Below are several high-level key takeaways from the hearing prepared by Delta Strategy Group.
KEY TAKEAWAYS
Trade & Tariffs
- Senator Smith (D-MN) questioned Phelan about the effects of tariffs on inflation and the agricultura economy. Phelan stated that tariffs may increase the prices of certain goods relative to others without necessarily increasing the overall national inflation levels.
- Senator Smith cited Federal Reserve (Fed) data that she claimed demonstrated that tariffs implemented through November 2025 had increased the Personal Consumption Expenditures (PCE) Price Index and posited that tariffs negatively affect agricultural communities by restricting export markets. Phelan responded that there remains a “robust academic debate” regarding the effects of tariffs and that it is too early to determine their full impact.
China & U.S. Competitiveness
- Senator Ricketts (R-NE) described China as the greatest threat to the American way of life and asked how Phelan would evaluate economic policies intended to counter Chinese competitiveness. Phelan stated that China’s position as a manufacturing powerhouse is a concern of his and highlighted increased U.S. manufacturing investment under the current administration.
- Senator Ricketts asked what other aspects of China concerned him and how it would affect advising to the President. Phelan pointed to the number of analytical resources within the CEA, including its staff of economists. He did not identify specific recommendations regarding tariffs, export controls, investment restrictions, or broader supply chain policy.
Geopolitics, Energy, & Inflation
- Senator Moreno (R-OH) said the short-term economic effects of action against Iran should be weighed against the far greater economic consequences of a nuclear-armed Iran. Phelan agreed that a nuclear attack or major geopolitical conflict would be severely damaging to the economy.
- Senator Hagerty (R-TN) asked Phelan about the broader economic outlook and the resilience of the U.S. economy amid international energy shocks. Phelan expressed optimism, stating that increased oil production and export capacity have reduced the economy’s exposure to geopolitical disruptions. He cited the market’s reaction to the current oil shock as evidence of economic resilience.
- Senator Rounds (R-SD) raised how declining crude oil and gasoline prices could affect inflation. Phelan stated that lower gasoline prices could have a significant effect on June headline inflation if prices remain near current levels.
Artificial Intelligence & Fintech
- Chairman Scott (R-SC) asked Phelan about the economic transformation associated with Artificial intelligence (AI). Phelan compared the potential productivity effects of AI to earlier technological advancements in sectors such as agriculture and telecommunications.
Digital Assets
- Questions regarding digital assets, stablecoins, credit union deposit flight, digital financial services, and the adoption of emerging technology were directed primarily to Crews.
- Senator Moreno asked Crews whether stablecoins had caused deposit flight from credit unions. Crews responded that credit unions had continued to grow despite concerns that stablecoins could draw funds away from traditional institutions.
- Senator Britt (R-AL) asked Crews how credit unions should safeguard consumers as digital technology and new financial services products continue to develop. Crews stated that the NCUA should support smaller credit unions as they adapt to technological change, emphasizing continued engagement between regulators and regulated institutions.
Regulation & Innovation
- Chairman Scott and Senator Moreno questioned Phelan about the effects of regulatory burdens on inflation, business formation, and innovation. Phelan stated that excessive regulation limits economic opportunity, while lower regulatory burdens support innovation and growth.
CEA Neutrality
- Phelan described the CEA as a source of “sober facts and analysis” rather than a policymaking body. When questioned by members on housing, trade, and other policy-specific questions, he generally did not take a firm position and emphasized that his role, if confirmed, would be to provide policymakers with objective assessments of a proposal’s quantitative and economic effects.