Story perspectives

Trump Proposes 10% Credit Card Interest Cap, Sparks Controversy

1/17/2026

Summary

Trump Proposes Interest Cap

Summary

Hassett Proposes Credit Access

White House economic adviser Kevin Hassett proposed banks could offer credit cards to underserved Americans while shifting focus from President Donald Trump's 10% interest rate cap.
He said the approach could help people with stable incomes but lacking credit access and legislation might not be necessary.
Bankers worry they might close accounts rather than comply with the cap, and talks with bank CEOs continue without formal discussions on the concept.

History

Historical Context

The 1978 Depository Institutions Deregulation and Monetary Control Act allowed banks to set their own interest rates, leading to rising credit card rates, often exceeding 20%. In 2009, the CARD Act aimed to protect consumers but resulted in higher rates and reduced credit availability. President Trump's proposed 10% cap seeks to alleviate consumer debt burdens, potentially saving Americans $100 billion annually.

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Trump Proposes Interest Cap

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