Warren calls Trump’s bluff on affordability after State of the Union

Democratic Senator Elizabeth Warren calls President Donald Trump’s bluff when he claimed to have “ended” the affordability crisis during his State of the Union address, opening a new front in the battle that will determine November’s midterm elections.

“Your claims directly contradict the daily experience of American households struggling with rising costs of basic needs, including food, housing, health care, child care and electricity,” Warren, D-Mass., wrote in a letter to Trump shared exclusively with CNBC after being sent late Wednesday.

“Despite your claims, you have not ‘solved’ affordability or ‘beat’ inflation. Instead, American household prices have soared over the past year,” wrote Warren, the top Democrat on the Senate Banking Committee.

Warren’s letter is the starting point for a frontal attack on Trump and congressional Republicans ahead of the 2026 midterm elections that could be decided on affordability. Trump’s approval rating for the economy has fallen as voters voice concerns about the high cost of living; this contrasted with a “roaring” economy in Trump’s State of the Union address.

Now Democrats hope to seize the opportunity to capitalize on affordability and remove Republicans from power in Congress. Warren made clear that the letter was her first move to sway the president on affordability at a time when Democrats are racing to sell their economic message across the country ahead of November.

“In the coming weeks, I will be writing directly to Administration officials, companies, and industry representatives about your chaotic tariffs and failed economic policies — seeking answers for the American people who are being forced to pay more for everything from groceries to housing,” Warren said. he said.

Warren also sent a letter late Wednesday. Amazon CEO Andy Jassy said the online retailer had been slow to publicly acknowledge that Trump’s tariffs had contributed to price increases on the platform since they went into effect. He also asked Amazon to answer a series of questions about its future plans for price increases, given Trump’s promise to find ways to impose tariffs.

Spokespeople for Amazon and the White House did not immediately respond to CNBC’s request for comment.

Trump has at times suggested he is getting serious about addressing affordability concerns. He called for an upper limit on credit card interest, which he did not mention in his speech. He also called for institutional investors to be banned from buying homes. Both are priorities for Warren and the progressive left.

But in his State of the Union address, Trump blamed the affordability issue solely on Democrats and argued that his administration was fixing the problem because polls consistently show voters’ economic concerns are rising.

“You caused this problem,” the president said. “They knew that their statements were a dirty, rotten lie. Their policies created the high prices, our policies are quickly ending them.”

While overall inflation has fallen significantly from recent highs, the cost of many everyday goods remains high, especially compared to before the Covid-19 pandemic. Electricity prices have risen rapidly due to increased demand from data centers, grocery prices have remained high, and housing costs have remained high. Trump’s tariff agenda has also contributed to maintaining high prices.

Trump doubled down on enacting tariffs by other means during his speech after the Supreme Court struck down his authority to impose tariffs.

He said the tariffs “will remain in force under alternative legislation that has been fully approved and tested.”

According to Warren, this only provided ammunition.

“Instead of providing relief to consumers, you are pursuing blanket additional tariffs through other mechanisms, opening the door to a new wave of price increases,” he said in his letter.