Senator Elizabeth Warren Talks Credit Card Caps, Powell

Summary

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Bloomberg Talks

Episode: Senator Elizabeth Warren Talks Credit Card Caps, Powell
Release Date: January 12, 2026
Guest: Senator Elizabeth Warren (D-MA), Ranking Member, Senate Banking Committee
Host: Bloomberg

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Episode Overview

This episode centers on Senator Elizabeth Warren’s stance on lowering costs for American families, her recent public exchange and direct phone call with President Donald Trump, and her perspective on current economic policies—including proposed credit card interest rate caps and housing affordability. The conversation also addresses the controversial investigation into Federal Reserve Chair Jerome Powell, raising issues about Fed independence and political influence.

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Key Discussion Points & Insights

Warren’s Speech and Trump’s Outreach

[00:38–02:18]

• Warren details a speech at the National Press Club, focusing on affordability and the Democratic Party’s mission to lower costs.

• She publicly called out Donald Trump for failing to deliver on campaign promises to lower living expenses, citing increases in groceries, healthcare, housing, and utilities.

• Warren reveals that after her speech, President Trump phoned her to discuss potential ways to reduce costs for families.

  “After that speech was over, Donald Trump gave me a call and we talked about things we could do to lower costs for American families. That is my job. That is the job of Democrats. That is the job of Congress and the President of the United States.”
  — Senator Warren [01:16]

The Potential for Bipartisan Collaboration

[02:18–05:30]

• The host draws parallels between some of Trump’s recent proposals and Warren’s long-standing policy ideas, such as capping credit card interest rates, limiting institutional investors in housing, and curbing defense contractor stock buybacks.

• Warren confirms they discussed capping credit card rates and the “Road to Housing” bill, which passed the Senate but is held up in the Republican-controlled House.

  “We specifically talked about putting a cap on interest rates on credit cards and about getting this road to housing bill ... Donald Trump just hasn't delivered on either one of those. So my view is no more talk. Let's actually deliver for American families.”
  — Senator Warren [02:47]

• Warren emphasizes her unwavering focus: fighting to lower costs for families, pushing Democrats to stake out a bold, concrete agenda rather than appease wealthy special interests.

  “Are we actually going to get in this fight full-throated all the way and show with concrete proposals that we are willing to make a difference in people's lives?”
  — Senator Warren [03:45]

• She reaffirms her readiness to work with anyone, including Trump, if it means tangible help for constituents but stresses accountability and action over “talk.”

Democratic Credentials & Cost of Living Crisis

[05:30–07:22]

• Warren highlights historical Democratic accomplishments (Social Security, Medicare, minimum wage, etc.) as evidence of the party’s commitment to the American middle class.

• She asserts that Trump's year in office has worsened cost-of-living metrics, citing a 21% rise in mortgage foreclosures and across-the-board price hikes.

  “Since Donald Trump has been president, home mortgage foreclosures have gone up 21%, costs have gone up in category after category after category. … Families cannot take it anymore.”
  — Senator Warren [05:39]

• The blame is placed on GOP policies: tariffs, corporate consolidation, and obstruction of legislation intended to help ordinary Americans.

Jay Powell Investigation and the Question of Fed Independence

[07:22–09:50]

• The host raises the Justice Department's investigation into Fed Chair Jerome Powell—an effort Warren strongly opposes, calling it a “pretext” for presidential interference.

• Warren defends the principle of Fed independence, even as someone who has previously criticized Powell’s policy decisions.

  “I am a supporter of Fed independence. … The weaponization of the Department of Justice is fundamentally wrong.”
  — Senator Warren [08:14]

• She warns that undermining the Fed for political advantage, especially before elections, risks long-term economic harm and erodes public trust.

  “If they could control interest rates, it would be to roll those interest rates down to juice the economy … Now that may work for the election, but it's terrible for the economy long term and it undermines confidence in the Fed.”
  — Senator Warren [08:00]

• Warren calls for Congressional oversight of the Justice Department’s actions, suggesting an investigation into its potential politicization.

Senate Hearings and Subpoenas

[09:50–10:18]

• The host asks about Bill Pulte, the FHFA Director, rumored to be a key player behind the investigation into Powell.

• Warren is open to subpoenaing Pulte to testify before the Senate Banking Committee, noting it would require bipartisan cooperation.

  “I would be very glad to subpoena Bill Pulte to testify before the Senate Banking Committee ... yes, by golly, he should come and testify under oath.”
  — Senator Warren [10:18]

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Notable Quotes & Memorable Moments

• On President Trump’s follow-through:

  “Donald Trump has talked about proposals that would reduce costs, but so far hadn't lifted a finger to deliver. So for me, it's put-up time.”
  — Senator Warren [04:58]

• On Democratic priorities:

  “Our job is to be in the fight to lower costs for American families. And I’m all in.”
  — Senator Warren [07:08]

• On Fed independence:

  “All of those are about Donald Trump exercising control over the Fed, destroying Fed independence. ... And that’s what this probe is. It’s a pretext. It’s a way to try to knock the legs out from Jerome Powell. I’m no Jerome Powell supporter, but I am a supporter of Fed independence.”
  — Senator Warren [08:32]

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Timestamps for Key Segments

• [00:38] – Introduction and context of Warren’s speech
• [01:16] – Warren recounts phone call with Trump
• [02:47] – Discussion of credit card caps and housing bill
• [05:39] – Costs increases under Trump, historical Democratic achievements
• [07:42] – Powell investigation; Warren’s defense of Fed independence
• [09:50] – Bill Pulte, FHFA, and potential Senate subpoena

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Conclusion

Senator Elizabeth Warren delivers an impassioned call-to-action for Democrats to reaffirm their tradition of championing the middle class by actively tackling America's cost-of-living crisis. She outlines opportunities and barriers to bipartisan progress, singles out recent Republican policies as exacerbating economic pain, and defends institutional safeguards like Fed independence. On potential hearings and investigations, she signals willingness to hold administration officials accountable—regardless of political complexity. The episode highlights the high stakes and sharp divisions shaping the current economic and political landscape.

Transcript

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[Bloomberg Host]

Network.

[Senator Elizabeth Warren]

Bloomberg Audio Studios Podcasts Radio news.

[Bloomberg Host]

Joining us now for more is Democratic Senator Elizabeth Warren of Massachusetts, ranking member on the Senate Banking Committee. Senator, it's always a pleasure to have you on Bloomberg TV and radio. This is obviously one of those days where we need to compare notes with you here. And I will note the fact that you delivered an important address earlier today at the National Press Club. It wasn't about Jay Powell. It was about the future of the Democrat Party. And I know affordability in the economy were key components of your address. You posted on social media after you left the club that President Trump called you after you mentioned him in your speech. What did he have to say?

[Senator Elizabeth Warren]

Well, the speech had been about how Democrats need to get out there and fight to lower costs for American families. I pointed out that Donald Trump had run for office and every day for a year, he promised that on day one he would lower costs for American families. He gets elected and said the reason he got elected, elected was because he promised on day one to lower costs. It's been a year now and the cost of groceries is up, the cost of health care is up, the cost of housing is up, the cost of utilities is up, all because of Donald Trump and Republican policies. And I said it's time both to hold Donald Trump accountable and for Democrats to get in there and put out our proposals to lower costs and to show that we're willing to fight for them. And after that speech was over, Donald Trump gave me a call and we talked about things we could do to lower costs for American families. That is my job. That is the job of Democrats. That is the job of Congress and the President of the United States.

[Bloomberg Host]

Well, wait a minute here. So he called you in the spirit of cooperation? Senator, I was, I guess I just assumed he was not a fan of your speech. Is this the same Donald Trump who wants to ban investors, institutional investors, from buying single family homes to stop defense contractors from issuing dividends and stock buybacks, wants to start lowering interest rates? A lot of these are pages out of your book, right? Are you guys going to collaborate on these issues?

[Senator Elizabeth Warren]

Same, same Donald Trump. In fact, we specifically talked about putting a cap on interest rates on credit cards and about getting this road to housing bill that has passed the Senate unanimously to build up more housing supply and bring down costs. It's hung up by Republicans over in the Democrats are all ready. We have voted for it, we're ready to go. But the Republicans in the House are holding it up. And Donald Trump just hasn't delivered on either one of those. So my view is no more talk. Let's actually deliver for American families. That's our job. So Senator Warren, you sound like you had this conversation with him. There are some similar issues here. Would you be willing to work with the president, work together to handle affordability for the American people, or do you fight back with everything going on right now in the midterms right around the corner? Absolutely. My job is to be here to fight to lower costs for American families. And that is what all of my Democratic colleagues are here for. The speech I was giving today was about how we best do that. Do we decide that we're going to lay out our agenda and try to soften it up in order not to offend any billionaires or corporations, corporate CEOs, are we actually going to get in this fight full throated all the way and show with concrete proposals that we are willing to make a difference in people's lives? We are willing to fight to unrig an economic system that keeps working better and better for the billionaires, but worse and worse for everyone else. I believe that Democrats don't must, must, must win in November 2024. And the way we do that is we build real credibility on the issue of lowering costs for American families. Senator, I'm curious, in this conversation with President Trump, did the investigation into Fed Chair Powell come up? So look, I'm not going to talk about details in a conversation, but I just want to say it was all about costs, about how we reduce costs for American families. And I've had proposals on the table for a very long time. Donald Trump has talked about proposals that would reduce costs, but so far hadn't lifted a finger to deliver. So for me, it's put up time. You really want to make some change? Donald Trump could help make some change right now. And that's what I want to see us do. I'm in this fight all the way.

[Bloomberg Host]

This is incredible. Are you guys going to appear on stage? He's going to Detroit tomorrow. This is Cats and dogs living together. Senator, I'm not even sure what to ask you next.

[Senator Elizabeth Warren]

Look, understand American families have been telling us now in election after election after election that their finances are getting more and more stressed, that they are more and more worried about their economic security. And we right now, after Donald Trump has been president for a year, it has all gotten worse. I don't know if you all saw just announced a couple of weeks ago that since Donald Trump has been president, home mortgage foreclosures have gone up 21%, costs have gone up in category after category after category. And it's about tariffs, it's about corporate consolidation. There are a lot of things the Republicans have been doing, all to drive up costs for families. Families cannot take it anymore. My pitch today in this speech is that Democrats, this is our moment to rebuild trust with the American people. After all, the Democratic Party were the ones who brought America Social Security and the 40 hour workweek and the minimum wage and unemployment insurance and Medicare and Medicaid and the Affordable Care act and housing for first time home buyingers and housing for veterans. We got out there and fought for those things that help build a more financially secure middle class. It is our time now to get back in that fight full throated, not to sand it down because some billionaire might say, whoa, that means I'll have to pay more taxes and that's too bad. Our job is to be in the fight to lower costs for American families. And I'm all in.

[Bloomberg Host]

Well, you got the cap on credit cards. We could just keep on going here, Senator. But I have to ask you about this whole Jay Powell affair, just for starters. This is the man you famously called a dangerous man. In a hearing in the Senate. We're now hearing about this investigation that could bring criminal charges. Do you support that probe?

[Senator Elizabeth Warren]

No, I do not. I think we're all clear what's going on here is it is a pretext for Donald Trump to be able to take control of the Federal Reserve. I don't have to remind you all and the people who listen to this program about the importance of Fed independence so that whatever it is the Fed is deciding on monetary policy, we should have confidence that that decision is based on their best assessment of the data about inflation, the data about unemployment, the data about GDP growth and investment, and not about politics. But we know the temptation for every president as you start to come into a tough election. If they could control interest rates, it would be to roll those interest rates down to juice the economy so there'd be a lot of cheap money flowing through the economy shortly before the election. Now that may work for the election, but it's terrible for the economy long term and it undermines confidence in the Fed that they are making good economic decisions. So Donald Trump, look from the first day basically that he got into office, he said he wanted to fire Jerome Powell. He's tried to fire Lisa Cook. He has openly, Lee said that he will not appoint anyone to be Fed chair who is not willing to be a sock puppet. That is agree with Donald Trump no matter what Donald Trump says. All of those are about Donald Trump exercising control over the Fed, destroying Fed independence. And that's what this probe is. It's a pretext. It's a way to try to knock the legs out from Jerome Powell. I'm no Jerome Powell supporter, but I am a supporter of Fed independence. And the weaponization of the Department of Justice is fundamentally wrong. Congress has a role to play here. Congress does not have to approve a new Federal Reserve Chair. And Congress could investigate what the Justice Department is up to, using its power in a way like this.

[Bloomberg Host]

Well, you might investigate what brought the President or I guess the DOJ to this point. The President, to be clear, says he wasn't part of this. But before you leave a senator, how about Bill Pulte? The FHFA director was with us this morning on Bloomberg. He refuted our own reporting that alleges Pulte is the main instigator in these charges against Powell and led the President in this direction. If you are going to follow up on this, will you subpoena Bill Poland to testify before the Banking Committee?

[Senator Elizabeth Warren]

I would be very glad to subpoena Bill Pulte to testify before the Senate Banking Committee. Obviously we need the cooperation of the Republicans to get that done, but yes, by golly, he should come and testify under oath.

[Bloomberg Host]

It's great to have you back Senator. Thank you for the time as always. Elizabeth Warren, the Democrat from Massachusetts on Bloomberg. We thank you.

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