President Trump announced a one-year cap of 10% on credit card interest rates, taking effect January 20th, in an effort to curb high fees imposed by financial institutions. However, his plan has sparked mixed reactions among lawmakers and industry stakeholders.
Critics argue that such a cap would drive consumers towards less regulated alternatives, leading to higher costs and reduced access to affordable credit for millions of American families and small business owners. The Bank Policy Institute, the American Bankers Association, and other financial groups have expressed opposition, citing evidence that a 10% interest rate cap would reduce credit availability.
Senator Bernie Sanders, who introduced a bipartisan bill with Senator Josh Hawley in February 2025 to cap credit card interest rates at 10% for five years, criticized Trump's plan as an attempt to fulfill his campaign promise without actual action. Sanders stated that a one-year cap is insufficient and urged Trump to work on passing legislation.
On the other hand, Senator Josh Hawley saw this announcement as a significant step forward, stating he will vote in favor of such a measure.
The move also drew responses from high-profile figures, including billionaire hedge fund manager Bill Ackman, who expressed concerns that the cap could cause credit card companies to cancel consumer cards if they couldn't charge adequate interest rates. However, Ackman later clarified his stance, acknowledging Trump's goal is worthy but expressing concern about the consequences.
Senator Elizabeth Warren, a vocal critic of Trump's economic policies, dismissed the idea as an attempt to "beg" financial institutions to behave, stating that Trump doesn't care about affordability and is attempting to shut down the Consumer Financial Protection Bureau.
As Congress remains divided on the issue, it remains unclear whether Trump's announcement will be implemented through executive order or legislation.
Critics argue that such a cap would drive consumers towards less regulated alternatives, leading to higher costs and reduced access to affordable credit for millions of American families and small business owners. The Bank Policy Institute, the American Bankers Association, and other financial groups have expressed opposition, citing evidence that a 10% interest rate cap would reduce credit availability.
Senator Bernie Sanders, who introduced a bipartisan bill with Senator Josh Hawley in February 2025 to cap credit card interest rates at 10% for five years, criticized Trump's plan as an attempt to fulfill his campaign promise without actual action. Sanders stated that a one-year cap is insufficient and urged Trump to work on passing legislation.
On the other hand, Senator Josh Hawley saw this announcement as a significant step forward, stating he will vote in favor of such a measure.
The move also drew responses from high-profile figures, including billionaire hedge fund manager Bill Ackman, who expressed concerns that the cap could cause credit card companies to cancel consumer cards if they couldn't charge adequate interest rates. However, Ackman later clarified his stance, acknowledging Trump's goal is worthy but expressing concern about the consequences.
Senator Elizabeth Warren, a vocal critic of Trump's economic policies, dismissed the idea as an attempt to "beg" financial institutions to behave, stating that Trump doesn't care about affordability and is attempting to shut down the Consumer Financial Protection Bureau.
As Congress remains divided on the issue, it remains unclear whether Trump's announcement will be implemented through executive order or legislation.
idk about this one... I mean, a 10% cap sounds good at first, but then you gotta think about the bigger picture. What if credit card companies just move their business to other states where the regulations are laxer? Or what if they just raise rates on existing cards instead of cancelling them? It's like Trump thinks he can just wave his magic wand and fix everything without thinking it through... 
Sources on this would be really interesting. Want to see some actual data or studies backing up these claims!
. and elizabeth warren is right, this is just an attempt to beg banks into being nice, but where's the actual legislation? i need to see some real action on affordability before i get excited about this... 
So the prez wants to cap credit card interest rates at 10% for a whole year, but I'm like, is that enough? 
I mean, if it's not, then why bother? And what about all those people who are gonna get screwed because their credit cards get cancelled? 
And can we talk about how this whole thing is just a big mess? 
Just make something happen already! 
. And what about those who can't afford their credit card debt in the first place? Will they just be forced to live without the convenience of having a credit card altogether? It's a tough call 
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. What about the long-term effects? Are we really ready to go without that credit card flexibility? And what about all the people who already have cards with crazy interest rates? It's gonna be tough for them to switch. I'm not sure if this is a good idea, but at least it's better than nothing, right? 
It's all so back-and-forth...can we just agree on something and move forward? 
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this is wild. I mean, 10% interest cap sounds like a good idea, but can we really trust banks to just chill now? 
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. Don't get me wrong, it's better than nothing, but if you're gonna do this, why not go big or go home? 
. I mean, think about all the people who are already living paycheck to paycheck 
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. idk, gotta think more about this problem and how we can solve it without putting ppl in a tough spot 