Senator Warren Disputes Trump Administration's CFPB Freeze
Senator Elizabeth Warren (D-Mass.) has asserted that the Consumer Financial Protection Bureau (CFPB) can only be dissolved by Congress, potentially setting up a legal confrontation with President Donald Trump's administration.
"The CFPB was created by Congress, and it is Congress alone who can eliminate it, not Donald Trump or Elon Musk," Warren told Yahoo Finance.
Warren and over 200 other lawmakers have demanded that Elon Musk's operatives from the Department of Government Efficiency (DOGE) be removed from the CFPB and that all operations be restored.
"The law is unambiguous, and the courts will enforce it if Musk and Trump violate it," Warren emphasized.
Warren has played a vital role in establishing the CFPB, which oversees consumer finance at large financial institutions. She criticized the administration's decision to suspend operations, stating that it "has ordered the cops to stop doing their jobs, making everybody less safe."
The Trump administration is reportedly considering consolidating other bank regulators without Congressional approval. Warren has condemned this idea, particularly the potential merger of the Federal Deposit Insurance Corporation (FDIC) and the Treasury Department.
"The FDIC plays a crucial role as a deposit insurer, and eliminating it would be a grave mistake," she said.
Warren also urged the Federal Reserve to lower interest rates to assist families in affording mortgages and paying off credit card debt. She expressed concern about the economic turmoil caused by Musk and Trump, advocating for an end to the economic chaos.
"We need to see interest rates come down and put a stop to this chaos. It's harming American families," Warren concluded.