“As of January 20, 2026, I, as President of the United States, am proposing a one-year cap on Credit Card Interest Rates at 10%,” Trump posted on Truth Social. “We will no longer allow the American Public to be ‘ripped off’ by Credit Card Companies.”
The president, who made a similar promise during the 2024 election campaign, positioned this initiative as a way to enhance affordability for consumers.
Trump’s announcement prompted reactions from financial experts. US hedge fund manager Bill Ackman, CEO of Pershing Square and a supporter of Trump in the last election, tweeted: “This is a mistake President @realDonaldTrump. If credit card lenders cannot charge rates sufficient to cover losses and provide adequate returns on equity, many will cancel cards for millions of consumers who will then be forced to seek credit from loan sharks at higher rates and inferior terms compared to what they previously paid.”
Many significant banking advocacy groups—including the Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum, and Independent Community Bankers of America—released a joint statement, cautioning that a 10% interest rate cap could “only steer consumers towards less regulated, more expensive alternatives.” Major US banks like American Express, Capital One, JPMorgan, Citigroup, and Bank of America had not responded to inquiries for comment at the time of publication.
The proposal arises alongside other Trump administration initiatives affecting credit card regulations, including last year’s effort to reverse a Biden-era rule that capped late fees at $8, which a federal judge later invalidated.
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