Breaking: Trump Announces 10% Credit Card Rate Cap Starting Jan 20

Donald Trump has made a stunning late-night announcement, declaring a one-year cap on credit card interest rates at 10%. Posting on Truth Social on Friday, the former president stated that the new restriction would go into effect on January 20. He characterized current rates of 20-30% as a “rip off” and vowed to stop companies from exploiting the American public. The move is a direct challenge to the financial status quo and a significant escalation in his economic policy agenda.
The announcement comes as Americans grapple with a record $1.17 trillion in credit card debt. This figure has surged significantly since 2021, driven by inflation and rising interest rates. Trump used these statistics to attack the Biden administration, blaming “Sleepy Joe” for the financial pain felt by millions. By promising a drastic reduction in rates, Trump is positioning himself as the defender of the working class against corporate greed.
However, the proposal faces immediate headwinds from the banking sector. Major financial associations issued a joint statement predicting that the cap would be “devastating” for credit availability. They argued that a 10% rate is insufficient to cover the costs and risks associated with lending to many consumers. If the cap is enforced, banks warned they would be forced to tighten lending standards, potentially cutting off access to credit for millions of families and small businesses.
Political reaction has been mixed. Senator Bernie Sanders, who had just criticized Trump for inaction, found his own policy ideas suddenly adopted by the White House. Meanwhile, Senator Elizabeth Warren expressed skepticism about the legality of the move, arguing that Trump cannot implement such a cap without Congress. She accused him of offering false hope while continuing to support deregulation elsewhere.
Investors are also wary. Bill Ackman, a hedge fund manager and Trump supporter, warned that the policy could lead to unintended consequences. He predicted that credit card companies would cancel cards for subprime borrowers to avoid losses, effectively shrinking the credit market. With the start date just around the corner, the practical details of how this cap will be enforced remain a major unanswered question.