Washington: The administration of US President Donald Trump has ordered the Consumer Financial Protection Bureau (CFPB) to halt nearly all its operations, according to directives issued by Russell Vought, its new acting head. In an email to employees obtained by NBC News, Vought instructed staff to cease supervision, examinations, stakeholder engagement, and enforcement actions effective immediately.

According to Anadolu Agency, the directives also include pausing pending investigations, halting public communications, and suspending the effective dates of final rules not yet implemented. Vought stated these measures are necessary to address what he described as the bureau's 'excessive' $711.6 million balance, announcing that the CFPB would not draw its next round of funding from the Federal Reserve.

The CFPB was established during the Barack Obama administration following the 2008 financial crisis, with the aim of protecting consumers from financial abuses. Vought, who was confirmed as director of the Office of Management and Budget (OMB) on Thursday, argued that the bureau's activities are not 'reasonably necessary' in the current fiscal environment.

While eliminating the bureau would require congressional action, the Trump administration's directives effectively curtail its operations for the time being.