Final answer:
The Consumer Financial Protection Bureau (CFPB) is not part of the Federal Reserve; it is an independent agency created to oversee financial industries prone to abusive practices. Although funded by the Federal Reserve, the CFPB operates independently, reflecting a political divide over federal oversight.
Step-by-step explanation:
The statement is False.
The Consumer Financial Protection Bureau (CFPB) is not housed under the Federal Reserve. The CFPB is an independent agency established in 2011 under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Its purpose is to protect consumers in the financial marketplace by enforcing federal consumer financial laws.
The Federal Reserve, on the other hand, is the central banking system of the United States responsible for conducting monetary policy, regulating banks, and promoting financial stability.
The question asks if the Consumer Financial Protection Bureau (CFPB), founded in 2011, is part of the Federal Reserve. The answer is False. The CFPB was created as an independent agency with overseer Tain financial industries, such as sub-prime mortgage lenders and payday lenders, which had shown a propensity for abusive practices. While the CFPB does receive funding from the Federal Reserve, it operates independently and is not "housed" under the Federal Reserve. The controversy surrounding the CFPB reflects broader political divisions regarding the size and scope of federal oversight.