Bank of America Considers Credit Card Interest Rate Cap Amid Trump's Proposal

President Donald Trump has proposed a temporary cap on credit card interest rates at 10% for one year, aiming to alleviate the financial burden on American consumers. This initiative comes as credit card debt in the United States has reached approximately $1.2 trillion, with average interest rates often exceeding 20%. Trump's announcement, made via social media on January 9, 2026, has prompted significant discussion within the banking industry regarding compliance and potential new product offerings.

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Bank of America, the second-largest bank in the U.S., is reportedly considering launching a credit card with an interest rate capped at 10%. This move is seen as a response to Trump's push for more affordable credit options. The bank is also consulting with other financial institutions to explore best practices for reducing consumer costs. Citigroup is similarly evaluating the feasibility of a credit card with a 10% interest rate.

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The banking sector has expressed apprehension regarding the implications of a mandated interest rate cap. Financial experts warn that such a cap could limit access to credit for consumers, particularly those with lower credit scores. Jaret Seiberg, an analyst at TD Cowen, noted that a 10% cap could lead to reduced lending and increased risk for banks. JPMorgan Chase CEO Jamie Dimon described the cap as potentially "an economic disaster," emphasizing the need for careful consideration of its broader economic impact.

Bank of America considers new credit card capped at 10% interest

In a recent interview, Bank of America CEO Brian Moynihan highlighted the complexities of implementing a blanket interest rate cap, stating, "If you actually make this a policy, it can re-allocate credit." He cautioned that such measures could slow down consumer spending and reduce credit availability. Meanwhile, Speaker of the House Mike Johnson acknowledged the need for legislative action to implement the cap, emphasizing the importance of understanding potential unintended consequences.

Bank of America considers new credit card capped at 10% interest

While Trump's proposal has garnered support from some lawmakers, including Senators Bernie Sanders and Josh Hawley, there is significant skepticism within the banking industry. The American Bankers Association has estimated that a 10% cap could result in 74% to 85% of open credit card accounts being closed or having their credit lines sharply reduced. This raises concerns about the potential negative effects on consumers who rely on credit for everyday expenses.

Trump’s credit card rate cap plan may restrict mortgage credit

• "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." — Donald Trump, President of the United States

Bank of America considers new credit card capped at 10% interest

• "If you actually make this a policy, it can re-allocate credit." — Brian Moynihan, CEO of Bank of America

Bank of America considers new credit card capped at 10% interest

• "The problem is, if you do that, then the credit card companies... would just stop lending money." — Mike Johnson, Speaker of the House

Trump’s credit card rate cap plan may restrict mortgage credit

As discussions continue, the banking industry is under pressure to respond to Trump's proposal while balancing the need for consumer protection and financial stability. The outcome of this initiative may hinge on legislative developments and the willingness of Congress to engage with the complexities of credit regulation.

Bank of America may introduce credit card with 10% APR