US President Calls for 10% Credit Card Interest Cap, Banks Push Back

President Donald Trump revived a campaign pledge Friday night by calling for a one-year, 10% cap on credit card interest rates, a proposal that banking groups immediately opposed despite the industry's heavy donations to his 2024 campaign and support for his second-term agenda.

Trump posted on Truth Social that he hoped the cap would be in place by January 20, one year after he took office, though he did not specify whether it would come through executive action or legislation.

Americans currently pay between 19.65% and 21.5% interest on credit cards on average and carry roughly $1.23 trillion in credit card debt, according to the New York Federal Reserve. Researchers found that a 10% cap would save Americans roughly $100 billion in interest annually. The American Bankers Association warned that such a cap "would only drive consumers toward less regulated, more costly alternatives."

Further reading: How Trump's proposed cap on credit card rates could reshape consumer lending.