By Meridith McGraw
President Trump called for credit-card interest rates to be capped at 10% for one year in his latest attempt to address voter concern about the stubbornly high cost of living.
"Please be informed that we will no longer let the American Public be 'ripped off' by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more," the president posted Friday on social media, adding that he wants the cap to begin Jan. 20.
Trump proposed a 10% cap during the 2024 presidential campaign as a way to ease the burden on Americans who are carrying high levels of credit-card debt. It is one of several affordability-focused proposals he has floated in recent days. On Wednesday, Trump announced a ban on institutional investors from buying single-family homes. On Thursday, he suggested that the mortgage companies Fannie Mae and Freddie Mac could buy $200 billion in mortgage bonds to help lower borrowing costs.
The president is expected to lay out his affordability agenda and housing policy during a speech at the World Economic Forum's annual meeting in Davos, Switzerland, this month.
Credit-card rates average around 23%, according to the Federal Reserve. The average credit-card interest rate hasn't fallen below 10% in Fed data going back to 1994.
Borrowers in lower- and middle-income households who carry balances would benefit the most from caps on credit-card charges. They would also be the first ones banks would stop lending to if the caps were enacted, according to experts, and banks might impose fees to make up for lost revenue.
The American Bankers Association and other industry groups said in a joint statement that Trump's proposal would hurt millions of American families and small-business owners. "If enacted, this cap would only drive consumers toward less regulated, more costly alternatives. We look forward to working with the administration to ensure Americans have access to the credit they need."
Bipartisan legislation for a cap on credit-card interest rates was introduced in the House and Senate last year. Sen. Bernie Sanders (I., Vt.) has said he supports Trump's plan to cap credit-card rates at 10%.
Hours before Trump's announcement, Sanders, in a social-media post, said, "Trump promised to cap credit card interest rates at 10% and stop Wall Street from getting away with murder. Instead, he deregulated big banks charging up to 30% interest on credit cards."
Sen. Elizabeth Warren (D., Mass.) said in a statement, "I said a year ago if Trump was serious I'd work to pass a bill to cap rates. Since then, he's done nothing but try to shut down the CFPB [Consumer Financial Protection Bureau]."
The Biden administration attempted to push through an $8 cap on credit-card late fees, but a federal judge in Texas halted it from taking effect.
Write to Meridith McGraw at Meridith.McGraw@WSJ.com
(END) Dow Jones Newswires
January 09, 2026 23:05 ET (04:05 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
