WASHINGTON, DC (April 20, 2026) |
Today, the Defense Credit Union Council (DCUC) submitted official recommendations on behalf of credit unions ahead of the April 21, 2026, hearing on the nomination of Kevin Warsh to serve as Chairman of the Federal Reserve.
“It is essential that monetary policy strikes the right balance between controlling inflation and preserving access to affordable credit,” says Jason Stverak, DCUC Chief Advocacy Officer. “Credit unions rely on a fair regulatory environment to continue serving their members and communities, and policies on interchange, liquidity, and payments must reflect the realities facing these mission-driven institutions.”
In the letter, DCUC noted how Federal Reserve policy directly affects credit availability, liquidity, and payments systems, and outlined several priorities for the Committee’s consideration:
Balanced monetary policy: Efforts to combat inflation must also preserve access to responsible, affordable credit, particularly for junior enlisted personnel and underserved communities.
Regulation II concerns: DCUC cautioned that proposals based on outdated data could distort the debit interchange market and shift costs to consumers. Interchange revenue is vital for fraud prevention, cybersecurity, and affordable services for military families.
Payments modernization: The FedNow Service offers critical real-time payment capabilities. DCUC stressed the need to ensure it remains accessible, affordable, and secure for institutions of all sizes.
Liquidity and regulatory equity: Policymakers should ensure fair access to liquidity tools and avoid frameworks that disadvantage smaller institutions. Coordination with the National Credit Union Administration (NCUA) is essential to prevent duplicative regulatory burdens.
To support the Committee’s review, DCUC included a set of questions for the record addressing monetary policy, interchange regulation, payments access, liquidity, and regulatory coordination.
DCUC expressed appreciation for the Committee’s thorough review and reaffirmed its role as a resource throughout the nomination process.