Trump Calls for 10% Cap on Credit Card Interest Rates
US President Donald Trump has called for a one-year cap on credit card interest rates at 10%, saying the move would provide relief to American consumers facing high borrowing costs. He said the proposed cap should apply nationwide and help households struggling with rising debt and interest payments.
Trump made the remarks as part of a broader push to address consumer credit costs, noting that many credit cards currently charge interest rates well above 20%. He argued that a temporary cap would curb what he described as excessive charges by lenders and offer short-term protection to borrowers.
Policy and Implementation Questions
The proposal does not currently include details on how the cap would be enforced or implemented. Any such move would require legislative approval, as interest rate limits are governed by federal and state laws. Financial experts have cautioned that imposing a strict cap could lead banks and card issuers to tighten lending standards or reduce access to credit, particularly for higher-risk borrowers.
Political and Market Response
The idea has drawn mixed reactions, with some lawmakers supporting action on high interest rates, while others warn of unintended consequences for the credit market. Banking industry representatives have raised concerns about the impact on lending and profitability.
