Trump Pushes 10% Credit Card Interest Cap as Rates Hit Record Highs
Good evening and we begin tonight with a bold and controversial proposal that could affect millions of households around the world, especially in the United States.
President Donald Trump says he wants to put a one-year cap on credit card interest rates, limiting them to just 10 percent. That idea comes at a time when credit card rates are near modern highs and many consumers are struggling to keep up with rising debt.
Right now, the average credit card interest rate in the U.S. sits above 22 percent. A decade ago, it was closer to 14 percent. For many families, that difference is enormous. It means balances grow faster, minimum payments rise and debt becomes harder to escape.
Speaking to reporters, President Trump accused credit card companies of taking advantage of consumers. He said the public has been abused and he claims he will not allow it to continue. The president says he wants the cap to take effect on January 20, marking the anniversary of his second-term inauguration and he suggested companies would be breaking the law if they do not comply.
But here is where things get complicated.
It is not clear whether the president has the legal authority to enforce such a cap on his own. There is no explanation yet on whether this would require an act of Congress, an executive order, or some other legal path. So far, no clear plan has been presented.
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This idea is not entirely new. Last year, a bipartisan proposal backed by Senator Bernie Sanders and Republican Senator Josh Hawley called for the same 10 percent cap, but that bill stalled and never became law. Some Democrats are now questioning why the president did not push for legislation earlier if he was serious about the issue.
Others, like Senator Elizabeth Warren, argue that words alone are not enough. She has pointed to the administration’s efforts to weaken the Consumer Financial Protection Bureau, an agency created after the financial crisis to protect consumers from unfair lending practices.
The financial industry is pushing back hard. Banking groups warn that a strict cap could reduce access to credit, especially for people with lower credit scores. They argue banks might cut credit limits, raise minimum payments, or steer borrowers toward less regulated and more expensive alternatives.
The market reaction was immediate. Bank stocks dropped following the announcement, signaling concern from investors about profitability and uncertainty.
So what does this mean for consumers?
If a cap were enforced, many cardholders could see dramatic relief on interest charges. But if lenders respond by tightening credit, some people could find it harder to borrow at all.
For now, this proposal remains just that, a proposal. But it has reignited a national debate about consumer debt, corporate power and how far government should go to protect borrowers.
We will be watching closely to see whether this turns into real policy, or remains a political promise.
That’s the latest on this developing story. Stay with us for more updates as they unfold.
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