Elizabeth Warren Warns Trump Against Attempt to Shutter Consumer Financial Protection Bureau

Senator Elizabeth Warren (D-Mass.) has forcefully asserted that President Donald Trump lacks the authority to dismantle the Consumer Financial Protection Bureau (CFPB). In an interview with Yahoo Finance, Warren stated that only Congress possesses the power to abolish the agency.

"The Consumer Financial Protection Bureau was created by Congress, and it is Congress, not Donald Trump or Elon Musk, who has the authority to disband it," Warren declared. She further noted that if Trump and Musk, who oversees the new Department of Government Efficiency (DOGE), fail to comply with the law, "we will have to resort to legal action to uphold it."

Warren's comments come after the Trump administration moved to freeze the CFPB's operations. In a letter sent to acting CFPB director Russ Vought and Treasury Secretary Scott Bessent, Warren and 200 other lawmakers demanded the removal of Musk's DOGE operatives from the CFPB and the restoration of all internal and external systems.

"The law is clear on this matter, and the courts will enforce it if it is violated," Warren emphasized. "This is how our system functions."

Warren dismissed suggestions to incorporate the CFPB into the Congressional appropriations process as a smokescreen. She emphasized the intent of those seeking to eliminate the agency, stating, "They don't want to modify it; they want to eradicate it."

Musk signaled the impending move on Friday, tweeting "CFPB RIP" shortly after DOGE members established a presence at the agency.

Warren, who played a key role in creating the CFPB after the financial crisis of 2008-2009, emphasized the agency's crucial mission of overseeing consumer finance. "The CFPB is essential for protecting consumers, and Musk's actions have essentially paralyzed it," she said.

Reports indicate that the Trump administration is considering plans to consolidate other bank regulators without congressional approval. Warren criticized the proposal to merge the Federal Deposit Insurance Corporation (FDIC) with the Treasury Department.

"Congress created these agencies, and only Congress can dissolve them," Warren asserted. "The FDIC plays a critical role in insuring deposits, and consolidating it with another agency would be a serious mistake."

Warren echoed President Trump's call for lower interest rates. However, she urged the Fed to bring down rates sooner, expressing concern over the economic turmoil created by the actions of the Trump administration.