President Trump calls for a one-year 10% cap on credit card rates starting Jan 20, but critics say it requires congressional approval.
WASHINGTON: President Donald Trump has called for a one-year cap on credit card interest rates at 10%, starting on January 20.
He announced the pledge on his Truth Social platform, stating, “Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies.”
The White House confirmed the call on social media but did not elaborate on how the plan would be implemented.
Analysts and lawmakers noted such a measure would require approval from Congress.
Trump had made a similar pledge during his 2024 election campaign, which was dismissed at the time as needing legislative action.
Lawmakers from both parties have previously raised concerns about high credit card rates.
Bipartisan legislative efforts to cap rates at 10% have been introduced in both the Senate and House but have not become law.
Democratic Senator Elizabeth Warren criticised Trump’s call as meaningless without a bill.
“Begging credit card companies to play nice is a joke,” said Warren, a member of the Senate Banking Committee.
She also criticised Trump’s past attempts to weaken the Consumer Financial Protection Bureau.
Billionaire investor Bill Ackman, a Trump endorser, called the proposed cap a “mistake.”
He argued it would cause lenders to cancel cards, forcing consumers to seek credit from loan sharks.
Major US banks and credit card issuers did not respond to requests for comment on the announcement.
Last year, the Trump administration successfully moved to scr
