President Trump Proposes One-Year 10% Cap on Credit Card Interest Rates

President Donald Trump announced a proposal to cap credit card interest rates at 10% for one year, starting January 20, 2026. In a post on Truth Social, he stated, "Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%."

Following the announcement, financial stocks experienced declines. Citigroup shares fell nearly 4%, JPMorgan Chase dropped 3%, Bank of America decreased by 2.45%, Visa declined 1.58%, and Mastercard was down 2%.

The banking industry expressed concerns that such a cap could reduce credit availability, particularly for low-income individuals, potentially pushing them toward more expensive lending alternatives. The Bank Policy Institute, along with other financial associations, stated that a 10% 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."

Some lawmakers have shown support for the proposal. Senator Josh Hawley commented, "Fantastic idea. Can't wait to vote for this." However, others, like Senator Elizabeth Warren, questioned the feasibility of implementing such a cap without congressional approval, stating, "Begging credit card companies to play nice is a joke."

The proposal has reignited discussions on financial regulation and consumer protection, with debates focusing on balancing consumer relief with potential impacts on credit access and the financial industry.