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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