President Donald Trump has the potential to ease the financial burden on American families, particularly related to credit card bills, yet his actions seem to fall short of promises.
In his upcoming State of the Union address, Trump is expected to put a positive spin on his economic record, despite a track record that hasn’t fulfilled his campaign pledge to cut costs from the onset of his presidency. Over 400 days into his current term, many Americans are finding that essentials like groceries, housing, and energy are costing more. Recent Supreme Court decisions criticized him for taking funds from families, and public opinion reflects widespread discontent over the perceived lack of effort to alleviate financial strains.
One straightforward move he could make is to honor his commitment to limit credit card interest rates to 10%. Such a cap could save individuals with credit card debt around $900 annually, accumulating to significant savings for households overall, which would bolster the economy.
On January 9, Trump seemed poised for action, announcing an end to deceptive practices by credit card companies and requesting banks to implement the 10% cap by January 20. However, I mentioned then that it might be overly optimistic to expect cooperation from credit firms, and advised that if he was serious, he would need Congressional support to legislate changes.
Just three days later, Trump called me after I had delivered a speech critiquing his policies regarding rising costs and their impact on families. I made it clear that if he truly wanted to limit interest rates, he must utilize his influence to push for Congressional action. I reiterated this point during our phone conversation.
It’s now six weeks later and the January 20 deadline has passed without any noticeable efforts from major banks to lower credit card interest rates voluntarily. Instead of working towards solutions, Trump and Budget Secretary Russ Vought appear to be ignoring the potential role of the Consumer Financial Protection Bureau to help reduce credit card costs. Despite claiming intentions to cap rates, his administration seems aligned with the very financial institutions hurting American consumers.
Critics argue that warnings from big banks about potential economic fallout from capping interest rates are exaggerated. These banks are incredibly profitable, and there seems to be no justification for the exorbitant rates they charge, especially when smaller financial institutions have found ways to offer lower terms while still earning profits.
The typical return on loans for these major banks is around 1.5%, compared to a staggering 6.8% return from credit cards. Additionally, credit cards play a critical role in attracting new customers for other banking products, making profit opportunities from lowered rates viable.
High interest rates benefit bank executives, contributing to their substantial salaries and bonuses. In 2025 alone, bank CEO compensation soared over $40 million, with JPMorgan Chase’s CEO reportedly receiving $770 million. Shareholders also enjoyed record dividends, as big banks distributed $140 billion on stock buybacks and dividends. Meanwhile, Americans collectively face over $150 billion in credit card interest each year.
There’s a clear demand for financial relief, and Democrats are prepared to act. After the President’s statements, I attempted to reach out to Chief of Staff Susie Wiles multiple times to discuss crafting a supportive 10% interest rate cap, which would deter retaliatory actions from banks such as account closures and reduced credit limits. We also touched on strategies for establishing permanent caps to prevent credit companies from returning to exploitative practices.
Yet, six weeks later, there’s still no progress on assistance for Americans. It’s time for decisive action—not more speeches. We need a legislative agreement, along with a commitment from the President to advocate for this essential reform.
The Senate Banking Committee is set to hold hearings in March and may advance a bill to the President later this spring. It’s crucial to stop the delays and finally provide the needed relief for American families.
