Trump Proposes Cap on Credit Card Interest Rates
WASHINGTON – President Trump announced on Friday his intention to impose a 10% cap on credit card interest rates for one year beginning January 20. However, he did not provide any specifics on how this plan would be implemented or enforced among businesses.
During his campaign for the 2024 election, Trump claimed he would achieve such measures, but analysts pointed out that congressional approval would be necessary for them to take effect.
Concerns about the high interest rates have been voiced by lawmakers from both political parties. Republicans currently hold a slim majority in both the House and the Senate. While there have been various legislative attempts to tackle this issue, none have progressed to law. Since entering office, Trump hasn’t shown clear endorsement for specific bills addressing this concern.
Critics, including some opposition politicians, have accused Trump of failing to deliver on his campaign pledges. Trump stated on Truth Social, “Effective January 20, 2026, I, as President of the United States, demand a one-year cap on credit card interest rates of 10%,” but he offered little further explanation.
He emphasized that Americans should no longer feel “ripped off” by credit card companies. However, Sen. Elizabeth Warren, the leading Democrat on the Senate Banking Committee, cautioned that the proposal is futile unless Congress passes a bill to implement it.
“Begging credit card companies to do better is a joke,” she stated, criticizing Trump’s previous actions to undermine the Consumer Financial Protection Bureau. “If he were serious, he’d work toward passing a legitimate interest rate cap.”
The White House did not quickly respond to requests for clarification regarding the specifics of Trump’s statement, but mentioned on social media that he had indeed proposed an interest rate cap.
Some major banks and credit card companies, including American Express, Capital One, JPMorgan, and Bank of America, expressed concerns through industry associations. They warned that a cap at 10% could limit credit availability and push consumers towards less regulated and potentially more costly options.
Legislative Responses to the Proposal
Senators Bernie Sanders and Josh Hawley have introduced bipartisan legislation aimed at capping credit card interest rates at 10% for five years, outlining explicit directives for credit card companies to comply as part of broader consumer relief efforts.
Similarly, Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna presented a House bill with the same interest rate cap, indicating a shared interest across party lines in addressing high rates.
Billionaire fund manager Bill Ackman, who supported Trump in the last election, described the president’s comments as “a mistake.”
Last year, the Trump administration sought to eliminate regulations that capped late fees for credit cards, claiming these rules were illegal. The administration had asked a federal judge to nullify the existing $8 cap, though the judge later ruled against it.
