On Wednesday, Senator John Kennedy of Louisiana leveled allegations against Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB), claiming that he is running his agency in an unlawful manner.

During a hearing for the CFPB’s “Semi-Annual Report to Congress,” Kennedy accused the Federal Reserve of not generating any earnings and experiencing financial losses since September 2022. As per the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is required to utilize funds from the “combined earnings of the Federal Reserve System.” Kennedy’s allegations suggest that the CFPB may be operating unlawfully.

“For the longest time, the Federal Reserve was earning money, but that stopped in September 2022,” Kennedy said. “Now they are losing money. They don’t have any earnings. They’re no longer transferring earnings to the general fund, and the Supreme Court based its decision on saying, this funding scheme is Constitutional under the appropriations clause, by saying that these earnings would go to the general fund from the Federal Reserve so getting them directly from the general fund is no big deal,” he added.