Warner warns Trump's Fed attacks will drive up borrowing costs for Virginians
Senator says unprecedented criminal probe threat against Federal Reserve chair undermines institution's independence, predicts higher mortgage and credit card rates
Senator Mark Warner warns that President Trump’s attacks on Federal Reserve Chair Jerome Powell will directly raise borrowing costs for Virginia families through higher mortgage, credit card, and car loan rates.
Speaking during a media availability on Tuesday, Warner called Trump’s potential criminal probe against Powell “unprecedented” and designed to undermine the Fed’s independence.
“This level of uncertainty will drive up interest costs because people say we can’t count on the American economy to run with any kind of independent backstop,” Warner said. “That means it’s going to cost more to borrow money.”
The Virginia Democrat explained that higher interest rates translate to increased costs across multiple areas of household spending.
“That’ll mean your mortgage rates will go up. It’ll mean your credit card rates will go up,” Warner said. “It’ll mean if you’re trying to buy a car, your car loan will go up, your student debt will go up.”
Warner emphasized that affordability remains the top concern for Americans and Virginians, making Trump’s actions particularly problematic.
“We already know the one thing that Americans care the most about right now, and Virginians as well, is affordability. They want their government to help lower costs,” he said. “And what President Trump has done by this retribution attack against Jay Powell is going to do the exact opposite.”
The Federal Reserve was established around 1913 to prevent financial panics that had plagued America through boom and bust cycles, Warner explained. The central bank maintains a dual mandate to keep inflation low while achieving full employment.
Warner noted that the Fed’s independence has drawn criticism from both Republican and Democratic former Fed chairs, as well as most former Treasury secretaries who have called Trump’s approach “crazy.”
“Politicians of both political parties, presidents, Congresses, always want to try to influence the Fed, for example, about setting interest rates,” Warner said. “But if that’s done on a political basis, people lose faith in the institutions.”
Beyond the Fed controversy, Warner announced he would trigger a Senate vote on a Congressional Review Act resolution targeting the Trump administration's healthcare rules.
The resolution aims to overturn administrative changes to Affordable Care Act marketplace access that Warner says will increase healthcare costs by approximately $3 billion and potentially cause 2 million Americans to lose coverage.
“Adds a lot of additional paperwork, adds a lot of additional burden,” Warner said of the new rules. “Why were they put in place? Frankly, because the administration hates the Affordable Care Act and they’re going to do everything possible to try to undermine it.”
Warner challenged Republican colleagues to support cheaper healthcare costs by backing his resolution.
“They could vote with me today on this CRA, and we could start to provide some relief in terms of the administrative burden or making it even harder to get health care,” he said.
The senator also addressed Trump’s threats regarding Greenland, calling the approach “crazy” and warning of potential consequences for NATO.
Warner noted that the United States already has an existing treaty with Denmark allowing extensive access to Greenland, including a military base.
“If the president were to take military action against Denmark, a NATO ally, it would destroy NATO, our strongest, longest-term alliance post World War II,” Warner said.
The situation has become so concerning that British and German governments are sending troops to Greenland, Warner reported.
“If we were to try to take action, not only would we be potentially attacking Denmark, but we could actually have American troops fighting against British and German troops,” he said.
Warner questioned Trump’s stated concerns about Russian access to Greenland’s rare earth minerals while simultaneously undermining Ukraine’s fight against Russia.
“If he cares about Russian expansionism, he ought to do more to stand by our ally in Ukraine, who’s candidly fighting NATO’s battle in many ways against the Russians right now, where Russians have already lost a million soldiers,” Warner said.
When asked about Immigration and Customs Enforcement operations, Warner expressed concerns about the agency’s expanded budget and shortened training periods.
ICE now has a budget larger than the FBI and nearly the size of the French military, Warner noted. The agency has reduced training from five or six months to 47 days.
“47 days it went to wilds because Donald Trump’s the 47th president,” Warner said, criticizing the transformation of ICE from its traditional role into “a quasi military force.”
Warner cited statistics showing that over 75% of people picked up by ICE in Virginia have no prior criminal record, contradicting Trump’s campaign promises to focus on violent criminals.
“I think we’ve all seen images in Virginia and around the country of massed ICE agents picking up moms as they drop off kids for school or dads as they’re going to work,” Warner said. “And the level of terror that’s put in, particularly to our immigrant communities, particularly Latino communities in Virginia, is pretty devastating.”
The senator also discussed artificial intelligence’s impact on Virginia’s workforce, citing a new report showing 1.5 million jobs in the state could be affected by AI changes.
Warner warned that recent college graduate unemployment, currently at 9%, could reach 25% over the next three years due to AI job elimination.
“You’re not going to need that young analyst at a firm,” Warner said, noting that some CEOs predict up to 50% job elimination, though he considers 25% more realistic in the near term.