Elizabeth Warren Vows Legal Action to Protect Consumer Financial Protection Bureau
Democratic Senator Elizabeth Warren of Massachusetts has declared that only Congress has the authority to disband the Consumer Financial Protection Bureau (CFPB), setting the stage for a potential legal battle with the Trump administration.
"It is Congress that created the Consumer Financial Protection Bureau, and it is only Congress, not Donald Trump, not Elon Musk... who can actually get rid of the CFPB," Warren stated in an interview with Yahoo Finance.
Warren and 200 other legislators have sent a letter to acting CFPB director Russ Vought and Treasury Secretary Scott Bessent, demanding the removal of Musk's operatives and the restoration of the agency's operations.
"The law is clear on this, and the courts will enforce the law if Elon Musk and Donald Trump break it," Warren affirmed to Yahoo Finance.
Regarding proposals to bring the CFPB into the Congressional appropriations process, Warren dismissed them as smokescreens.
"The folks who want to kill it, want to kill it. They don't want to change it a little bit," she emphasized.
The Trump administration has ordered a halt to CFPB operations, effectively preventing employees from accessing its headquarters. Musk, who oversees the Department of Government Efficiency (DOGE), tweeted "CFPB RIP" ahead of the move.
Warren criticized the administration's actions, stating that they have sidelined the agency's oversight of consumer finance in large financial institutions.
She also expressed concern over reports that the Trump administration is considering consolidating other bank regulators without Congressional approval.
"We really think our financial system is going to operate better if we get rid of the FDIC insurance?" Warren questioned.
Warren called on Federal Reserve Chair Jerome Powell to lower interest rates, a position Trump has also advocated for. She urged the Fed to address economic turmoil caused by the Trump administration's policies.
"I still want to see those interest rates come down. I think it's the right thing to do. But we also need to stop this economic chaos," Warren emphasized.