"This is Putin's dream, to have everybody fighting with themselves in America," McFarland said on Thursday's episode of Fox News Radio's "Hemmer Time" podcast.
She stressed to host Bill Hemmer that the most important part of last week's hearings was the testimony from former National Security Council aide Fiona Hill, who told lawmakers that Russian President Vladimir Putin's goal is to sow discord on both sides of the American political spectrum.
"That is their goal, to pit us against each other, not necessarily to elect this guy or that guy, but to get us fighting amongst ourselves so that the country becomes dysfunctional, so that we start doubting our elections and we start losing faith in our own institutions," said McFarland, urging Americans to read Hill's full opening statement.
"That's what Putin's all about. It's payback time for him. The Cold War ended because the Soviet economy collapsed. The Soviet Union collapsed. He wants to collapse American democracy."
McFarland lamented that all of the "oxygen" in Washington over the past two years went toward the Mueller investigation and critics of President Trump going down "one rabbit hole after another." She said as a result, "the business of the nation" is not getting done by Congress.
Reflecting on her time in the White House in 2017, McFarland said the American people are fed up with the Washington "establishment" and that the issue is bigger than Trump.
"The establishment would love you to think that it's all about Trump. And the minute Trump's gone, things to go back to normal. And frankly, Trump wants you to think it's all about him, too. But it isn't. It's bigger than Trump. I think what it is, is the establishment is stuck," she said, arguing many Americans are frustrated by the trillions spent on two foreign wars and "tired" ideas.
"Government by its very nature is stuck. Its status quo doesn't want anything to change and doesn't want anybody else to be in charge. And so I think what we're having now is a battle between Donald Trump and the Washington establishment. Trump representing the majority of Americans," said McFarland, author of the forthcoming book "Revolution: Trump, Washington and 'We the People.'"
She concluded by saying she's optimistic that the battle will result in America "recreating itself" behind new ideas in the long run.