What the Trump team is proposing
The White House is pitching a voluntary plan for banks to issue what they are calling “Trump Cards” that would cap credit card rates at 10 percent for a year. Kevin Hassett, Director of the National Economic Council, told Fox Business the idea could be done without new laws because banks might opt in on their own. President Trump telegraphed the move on social media, saying he will not let Americans be “ripped off” by sky high credit card interest and calling for affordability starting January 20, 2026.
Why banks say they are skeptical
Banking industry groups politely shrugged at the proposal. They agreed with the goal of cheaper credit but warned a hard cap of 10 percent would shrink available credit and push consumers into riskier, less regulated lending. The banks argue lenders need room to price risk and that a blunt cap could have unintended consequences for borrowers who already struggle to access credit.
Where Congress stands on the idea
Lawmakers are not lining up to pass a credit card rate cap. House Speaker Mike Johnson warned that actual legislation would require careful work to avoid negative side effects. Many Republicans and Democrats worry a one year cap could disrupt credit markets and hurt small businesses and families who rely on revolving credit to smooth cash flow.
What supporters say it could do
Supporters counter that high credit card interest rates have become a burden for many households, with average rates near 20 percent according to consumer surveys. They believe a 10 percent option from participating banks could give borrowers a safer, cheaper way to manage debt and would put competitive pressure on the industry to lower rates generally.
What to watch next
Keep an eye on bank announcements and whether any big issuers volunteer to pilot low rate cards. If major lenders sign on, the plan could spread without Congress. If they do not, the proposal may remain political theater. Either way, the debate highlights real tension between lowering consumer costs and preserving credit availability.
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“saying he will not let Americans be “ripped off” by sky high credit card interest”
Total red herring. Americans sign up for their credit cards, no one forced it upon them. Americans choose to use their credit cards, no one forces them to use it. Americans choose to carry a balance on their credit card, I prefer to pay it off every month and use money for free. Americans choose their level of income, I could have been an anesthesiologist, or a lawyer, or a dope smoker; but I chose Air Force Officer. That choice sets your earning potential, and is the SINGLE MOST IMPORTANT INVESTMENT YOU WILL EVER MAKE, not your stupid house, that’s #3.
It’s all about the choices you make, from about age 12 till death.
Cant we apply to estd credit card lines??
CUT rates
CUT admin overhead alone
Merge Operations
I’m 79 years old and have paid every credit card bill in full at or before the due date (except MANY years ago in college). So, I personally don’t care what interest rates banks charge. I do however know that many struggling Americans and American family live from paycheck to paycheck and can NOT afford the exorbitant and outrageous rates that banks charge these days! There should never be any CC interest rate over 15%, and that only for the many time repeat offenders! At a 10% rate, the banks are making a good rate of return on hardworking Americans!
What is needed is to teach high school kids how to manage money and not to get into debt. Unfortunately, sometime one or both parents don’t exhibit fiscal skills. It is all about staying within your means and that doesn’t mean trying to keep up with the Jones’s.