Trump Fulfills Campaign Promise with 10% Rate Cap Decree

Donald Trump has moved to fulfill a key promise from his second campaign, announcing a 10% cap on credit card interest rates. The former president took to Truth Social on Friday to declare that the new policy would take effect on January 20. He stated that his administration would no longer allow credit card companies to charge “Interest Rates of 20 to 30%,” framing the move as a victory for the American consumer.
During his campaign, Trump had frequently criticized the high cost of debt, promising to bring relief to struggling families. With credit card balances now at a record $1.17 trillion, the need for such relief is acute. By setting a hard cap, Trump is attempting to deliver on his pledge and prove that he can lower the cost of living for his base.
However, the banking industry has reacted with alarm. A coalition of major financial groups issued a statement warning that the cap would be “devastating” for the credit market. They argued that a 10% rate is insufficient to cover the risk of lending to many consumers, meaning banks would be forced to stop issuing cards to those who need them most. The industry predicts a sharp contraction in credit availability if the policy is enforced.
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. Senator Josh Hawley cheered the move, calling it a “fantastic idea.” But Senator Elizabeth Warren dismissed it as a “joke,” arguing that Trump lacks the legal authority to implement the cap without Congress.
Investor Bill Ackman also weighed in, warning of unintended consequences. He predicted that the cap would lead to mass card cancellations, as banks seek to limit their losses. As the January 20 implementation date approaches, the nation watches to see if Trump can successfully impose his will on the financial sector.