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Saturday 31 October 2026 12:18:50 GMT
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Reprising a promise from the campaign trail, President Donald Trump is calling for a temporary cap of 10% on credit card interest rates, a proposal that could save U.S. consumers tens of billions of dollars but has already triggered pushback from an industry that has largely backed him. In a post Friday night on Truth Social, Trump did not specify whether the cap would be implemented through executive action or congressional legislation. However, a Republican senator said he has discussed the plan directly with the president and intends to introduce a bill with Trump’s full backing. Trump said he hopes the cap would take effect on Jan. 20, marking one year since he returned to office. The proposal is expected to face stiff resistance not only from credit card issuers but also from Wall Street more broadly. Financial institutions were among Trump’s top donors during the 2024 election and have supported many elements of his second-term policy agenda. Banks argue that limiting interest rates would disproportionately harm lower-income borrowers by restricting access to credit, potentially pushing them toward more expensive options such as payday lenders or pawnshops. “We will no longer allow the American public to be ripped off by credit card companies charging interest rates of 20% to 30%,” Trump wrote. Economists who evaluated the proposal when it was first introduced during the campaign estimated that a 10% cap could reduce consumer interest payments by about $100 billion annually. Their analysis also concluded that while credit card companies would see significant revenue losses, the industry would remain profitable, though rewards programs and other cardholder benefits could be reduced.#fyp #viral
Reprising a promise from the campaign trail, President Donald Trump is calling for a temporary cap of 10% on credit card interest rates, a proposal that could save U.S. consumers tens of billions of dollars but has already triggered pushback from an industry that has largely backed him. In a post Friday night on Truth Social, Trump did not specify whether the cap would be implemented through executive action or congressional legislation. However, a Republican senator said he has discussed the plan directly with the president and intends to introduce a bill with Trump’s full backing. Trump said he hopes the cap would take effect on Jan. 20, marking one year since he returned to office. The proposal is expected to face stiff resistance not only from credit card issuers but also from Wall Street more broadly. Financial institutions were among Trump’s top donors during the 2024 election and have supported many elements of his second-term policy agenda. Banks argue that limiting interest rates would disproportionately harm lower-income borrowers by restricting access to credit, potentially pushing them toward more expensive options such as payday lenders or pawnshops. “We will no longer allow the American public to be ripped off by credit card companies charging interest rates of 20% to 30%,” Trump wrote. Economists who evaluated the proposal when it was first introduced during the campaign estimated that a 10% cap could reduce consumer interest payments by about $100 billion annually. Their analysis also concluded that while credit card companies would see significant revenue losses, the industry would remain profitable, though rewards programs and other cardholder benefits could be reduced.#fyp #viral

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