Johnson Comments on Trump’s Credit Card Interest Rate Proposal

On Tuesday, House Speaker Mike Johnson expressed skepticism regarding President Donald Trump’s suggestion to impose a temporary 10% cap on credit card interest rates. Johnson mentioned that the president has likely considered the potential negative effects for consumers.

Trump had announced the plan on Friday, wanting it to go into effect for a year starting January 20 as part of his efforts to lower costs. However, Johnson pointed out that the House would not prioritize this bill for now, indicating it might require more legislative action.

Johnson, responding to inquiries from reporters, remarked, “When we move forward with policies aimed at cutting costs, we should be mindful of the possible negative fallout.” He acknowledged that while Trump is an “ideas guy” with a focus on making life more affordable, some proposals could lead to unintended consequences.

He added, “What some experts are warning is that if this cap is put in place, credit card companies might reduce lending altogether or limit how much people can borrow.” This stance is significant for a speaker who usually supports Trump’s policy initiatives.

Opposition to capping credit card interest rates is prevalent among conservatives and the banking sector. They argue that such a move would restrict credit access, particularly for low-income individuals, pushing them towards riskier financial alternatives.

The American Bankers Association stated, “Evidence indicates that a 10% interest rate cap would diminish credit availability and harm the millions of Americans who depend on credit cards.” They expressed concern that consumers would turn to less regulated, costlier options if this cap were enacted.

The White House has not yet commented on the situation. Some bipartisan support exists for the cap, with figures like populist Republican Sen. Josh Hawley, independent Sen. Bernie Sanders, and Democratic Sen. Elizabeth Warren all backing it.

Hawley remarked, “President Trump is right: Working Americans are struggling with significant credit card debt while issuers profit from soaring interest rates.” He called the situation exploitative and in need of change.

Trump claimed on his Truth Social account that credit card companies are charging consumers excessively—between “20 to 30 percent or more” interest—and noted that his proposal will coincide with the first anniversary of the start of his second term.

This cap was initially suggested during Trump’s 2024 presidential campaign. Furthermore, Trump has proposed banning large investors from acquiring single-family homes to tackle housing affordability, which has drawn criticism from conservatives for not addressing fundamental housing issues.

Senate Majority Leader John Thune also voiced his concerns on Tuesday, arguing against the interest rate cap by stating, “That would likely limit credit access for many people across the country.” He added, “The credit card would probably turn into a debit card.”