What's happened
As of late January 2026, President Donald Trump is actively advocating for a one-year cap on US credit card interest rates at 10%, aiming to ease the $1.23 trillion consumer credit card debt burden. Despite some bipartisan support, including from Senator Elizabeth Warren, the proposal faces strong opposition from major banks and financial groups warning it would restrict credit access and harm the economy. Implementation requires congressional approval.
What's behind the headline?
Political and Economic Stakes
President Trump's push for a 10% cap on credit card interest rates is a populist response to soaring consumer debt and affordability concerns ahead of the midterms. While the proposal appeals to voters burdened by high credit card rates, it clashes with entrenched financial industry interests and regulatory realities.
Industry Resistance and Risks
Major banks and credit card companies warn that a 10% cap would force them to restrict credit access, especially for consumers with lower credit scores, potentially stripping credit from up to 80% of Americans. JPMorgan CEO Jamie Dimon and others argue this would reduce consumer spending and harm sectors reliant on credit card transactions, such as retail and travel.
Legislative and Enforcement Challenges
The cap requires congressional approval; executive action alone is insufficient. Bipartisan bills exist but have stalled, and Republican leadership remains skeptical. Enforcement mechanisms are unclear, especially given the Trump administration's prior efforts to weaken the Consumer Financial Protection Bureau, the agency that would police such a cap.
Political Calculations
Trump's advocacy serves to position him as a champion of affordability, contrasting with Democratic messaging. His outreach to progressive figures like Senator Elizabeth Warren signals an attempt to build bipartisan momentum, though skepticism remains high. The timing ahead of midterms suggests a strategic move to energize his base and sway undecided voters.
Market and Consumer Impact
While the cap could save consumers an estimated $100 billion annually in interest, it risks reducing credit availability and dismantling popular rewards programs funded by interest income. Some fintech firms like Bilt have preemptively introduced cards with 10% APR promotions, potentially setting a market example.
Outlook
Given strong industry opposition, legislative hurdles, and enforcement uncertainties, the 10% cap is unlikely to be enacted soon. However, the debate spotlights growing consumer distress over credit costs and may pressure financial institutions to offer more affordable products voluntarily. The issue will remain a flashpoint in US economic and political discourse through 2026.
What the papers say
Steven Nelson of the NY Post reports on Trump's rally in Iowa where he emphasized affordability and warned that losing the midterms would jeopardize tax cuts and economic gains. Bloomberg and NY Post coverage detail how Bank of America and Citigroup are considering 10% credit card rates amid Trump's pressure, though banking executives like JPMorgan's Jamie Dimon warn of economic disaster if the cap is imposed. Dimon, quoted by Al Jazeera and Business Insider UK, predicts credit restrictions for 80% of Americans and urges a test in Vermont and Massachusetts, highlighting the complexity of the issue.
The Independent and AP News highlight the administration's lack of clarity on enforcement and the banking industry's cautious engagement, with some banks willing to collaborate but opposing the cap. Business Insider UK and Al Jazeera note bipartisan legislative efforts by Senators Bernie Sanders and Josh Hawley, with some progressive support from Elizabeth Warren, who spoke with Trump about cooperation.
Criticism from financial leaders like Bill Ackman, who called the cap a "mistake" in a deleted post, contrasts with Trump's populist framing of the issue as protecting consumers from being "ripped off." The New York Times and The Guardian provide context on Trump's prior deregulation of consumer protections and the stalled progress of related legislation. Bilt's introduction of credit cards with a 10% introductory APR, covered by Business Insider UK and The Independent, illustrates market responses to the political pressure.
Overall, the sources reveal a contentious debate balancing consumer relief against financial industry viability, with political maneuvering shaping the discourse ahead of key elections.
How we got here
Trump first proposed capping credit card interest rates at 10% during his 2024 campaign, citing consumer affordability concerns amid record-high credit card debt. The US credit card debt reached $1.23 trillion in late 2025, with average interest rates near 20%. Previous bipartisan bills to cap rates have stalled amid industry opposition. The Trump administration has also taken steps to limit institutional investors in housing and lower mortgage rates.
Go deeper
- What are the main arguments for and against the 10% credit card interest cap?
- How might the cap affect consumers with lower credit scores?
- What is the likelihood of Congress passing legislation to enforce the cap?
Common question
-
What Does Trump's New Credit Card Interest Cap Mean for Consumers?
Former President Trump has proposed a one-year cap of 10% on credit card interest rates, sparking questions about how this could impact everyday consumers. While the idea aims to lower high-interest charges, it requires congressional approval and faces legislative hurdles. Many are wondering if this move will actually benefit consumers, how soon it could take effect, and what it means for banks and lenders. Below, we answer some of the most common questions about this proposal and what it could mean for your finances.
-
Could Trump’s 10% Credit Card Interest Cap Actually Happen?
Former President Trump has proposed a one-year cap of 10% on credit card interest rates, sparking questions about its feasibility and impact. Many wonder if this bold move could become law, how it might affect banks and consumers, and what it signals for future financial reforms. Below, we explore the key questions surrounding this proposal and what it could mean for the economy.
-
Will Trump’s Proposed 10% Credit Card Interest Cap Become Law?
Former President Trump has announced a plan to cap credit card interest rates at 10%, sparking questions about its chances of passing and its impact on the financial industry. With political debates heating up, many are wondering if this proposal will become law, how it might affect credit card companies, and what it could mean for consumers. Below, we explore the key questions surrounding this controversial plan.
-
What Would a 10% Credit Card Interest Rate Mean for Consumers?
Recently, President Trump proposed a plan to cap credit card interest rates at 10%, sparking widespread debate. Many wonder how such a change could impact everyday consumers, credit availability, and the broader economy. Below, we explore the key questions surrounding this proposal and what it could mean for you and the financial industry.
-
Why Are Malaysia and Indonesia Banning the AI Tool Grok?
Recently, Malaysia and Indonesia announced bans on the AI tool Grok, raising questions about the reasons behind these decisions. Are these bans about safety, privacy, or other concerns? What do these actions mean for AI regulation in the region? Below, we explore the key reasons for these bans and what they could mean for AI innovation and safety.
-
What is Trump's new 10% credit card interest cap and how will it affect consumers?
In January 2026, President Donald Trump proposed a one-year cap on credit card interest rates at 10%. This move has sparked widespread debate about its potential impact on consumers, lenders, and the economy. Many are asking: Will this cap make credit cheaper or harder to access? When will it take effect? And what are the political and industry reactions? Below, we explore the key questions surrounding this controversial proposal.
-
What Is Trump's Proposed 10% Credit Card Rate Cap?
The proposed 10% credit card interest rate cap by President Donald Trump has sparked widespread debate. While some see it as a much-needed relief for consumers drowning in debt, others warn it could have serious repercussions for lenders and the economy. Curious about how this proposal might impact you or the financial system? Below, we answer key questions about this controversial plan and what it could mean for your credit options.
-
Why Did Trump Support Venezuela's Interim Leader?
In early 2026, former President Donald Trump shifted his stance on Venezuela's leadership, backing interim president Delcy Rodríguez after the US military captured Nicolás Maduro. This move has sparked questions about US foreign policy, Trump's motivations, and what it means for Venezuela's future. Below, we explore the key reasons behind Trump's support and what this could mean for global politics.
-
What Is Trump's Plan to Cap Credit Card Interest at 10%?
In early 2026, President Donald Trump has proposed a bold plan to limit credit card interest rates to 10% for a year. This move aims to ease the burden of rising consumer debt, which has reached over $1.2 trillion. But what does this proposal really mean for consumers, banks, and the economy? Below, we explore the key questions surrounding this controversial policy, including its potential impact, chances of passing Congress, and the arguments for and against it.
-
What Are the Biggest News Stories Today in Politics, Economy, Music, and Sports?
Stay updated with the top headlines shaping the world today. From political shifts and economic proposals to legendary musician passings and sports victories, these stories reflect current global trends and ongoing developments. Curious about how these events connect or what they mean for the future? Keep reading for in-depth insights and answers to your most pressing questions.
-
Will Trump's 10% Credit Card Interest Cap Pass Congress?
President Donald Trump is pushing for a new proposal to cap credit card interest rates at 10%, aiming to ease the burden of rising consumer debt. But will this plan become law? Many are wondering how such a cap could impact credit card users, the economy, and the banking industry. Below, we explore the key questions surrounding this controversial proposal and what it could mean for you.
More on these topics
-
Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
-
Bernard Sanders is an American politician who has served as the junior United States Senator from Vermont since 2007. The longest-serving Independent in congressional history, he was elected to the U.S.
-
Joshua David Hawley is an American lawyer and Republican politician serving as the 42nd and current Attorney General of Missouri since 2017. He is the U.S. Senator-elect from Missouri, having defeated incumbent Democrat Claire McCaskill in the state's 201
-
Elizabeth Ann Warren is an American politician and academic serving as the senior United States Senator from Massachusetts since 2013. She was formerly a prominent scholar specializing in bankruptcy law.
-
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City.
-
Jamie Dimon is an American business executive. He is chairman and CEO of JPMorgan Chase, the largest of the big four American banks, and was previously on the board of directors of the Federal Reserve Bank of New York.
-
Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City.
-
The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders,...
-
Wells Fargo & Company is an American multinational financial services company headquartered in San Francisco, California, with central offices throughout the United States.
-
Pershing Square Capital Management is an American hedge fund management company founded and run by Bill Ackman, located at 787 11th Avenue in New York.
-
William Albert Ackman is an American investor and hedge fund manager. He is the founder and CEO of Pershing Square Capital Management, a hedge fund management company.
-
Truth Social is a proposed social media platform planned to be launched by Trump Media & Technology Group. It is planned to have a limited launch on Apple's App Store in November 2021, and a full public launch in 2022.
-
Zohran Kwame Mamdani is a Ugandan-American politician. He is the assembly member for the 36th district of the New York State Assembly. Mamdani was elected after defeating incumbent Democrat Aravella Simotas in the 2020 primary.
-
The Bank of America Corporation is an American multinational investment bank and financial services company headquartered in Charlotte, with central hubs in New York City, London, Hong Kong, Dallas, and Toronto.