Trump calls for a 10% cap on credit card rates in his latest appeal to affordability concerns

By Luciana Lopez, CNN

(CNN) — President Donald Trump on Friday called for a one-year, 10% cap on credit card interest rates, saying the American public is being “ripped off” in a Truth Social post.

Trump called for the cap to come into effect on January 20, the one-year anniversary of his return to the White House. But he did not specify how a cap might happen, including whether he was calling for voluntary participation from credit card companies or looking for government mechanisms to enforce his proposal.

In his post, Trump cited “AFFORDABILITY!” as a rationale for the temporary cap, which he also proposed on the campaign trail in September 2024.

The cost-of-living issue has become a source of increasing frustration for many Americans and a political liability for Trump and Republicans. Years of accumulated inflation have heaped on price pressures, and Trump blamed his predecessor, former President Joe Biden, for high credit card rates.

But supporting caps on credit card rates represents something of an about-face for Trump, whose administration last year ditched an $8 credit card fee limit imposed by the Biden administration. The Consumer Financial Protection Bureau at the time estimated that the Biden administration’s action would save families more than $10 billion a year by cutting fees from an average of $32.

A federal judge initially blocked that effort in 2024, and the Trump administration last year joined sides with the banks that had sued to stop the rule’s enactment.

The banking industry warned Friday night that Trump’s proposal would hurt consumers and small business. The Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America issued a joint statement outlining the negative consequences.

“We share the President’s goal of helping Americans access more affordable credit,” the industry groups said. “At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help.”

“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” the groups continued.

Credit card interest rates represent a significant portion of financial institutions’ revenue. Capping those rates could backfire, resulting in significantly stricter lending standards and making credit unavailable to lower-income people or those with lower credit scores.

That could exacerbate the so-called K-shaped economy in which America’s wealth gap has widened. While many wealthier Americans have enjoyed years of double-digit stock market gains, advancing home prices and rising wages, those earning less have been squeezed by the combination of higher prices, debt and a slowing job market.

Trump’s credit card announcement Friday came toward the end of a week with numerous populist economic announcements that the president issued on social media to try to convince Americans that he’s making headway on the issue. On Thursday, for example, he posted about ordering “my representatives” to buy mortgage bonds to try to lower home costs; on Wednesday, he wrote about banning institutional investors from snapping up single-family homes.

Trump has his work cut out for him to persuade Americans that he’s making headway on affordability. In CNN’s most recent poll on the economy, 61% of Americans said Trump’s policies have “worsened economic conditions in this country.” This week, the New York Fed reported Americans’ expectations that they’ll find a job fell to an all-time low.

The Trump administration has also worked to dismantle the CFPB. The watchdog agency, which conducts oversight over the financial services industries and responds to consumer complaints, has been a target of conservatives, including Trump, for years.

CNN has reached out to the White House and the American Bankers Association for comment.

This story has been updated with additional context and developments.

CNN’s Matt Egan and Tami Luhby also contributed reporting.

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