Former President Donald Trump has called for a temporary cap on credit card interest rates at 10% for one year, aiming to ease consumer debt burdens amid rising inflation. The proposal, unveiled during a campaign rally in Florida, would apply across all major card issuers and could impact millions of cardholders.
- Proposed 10% cap on credit card interest rates for one year
- Affects all major issuers including JPMorgan Chase, Bank of America, and Capital One
- Applies to both new and existing credit card accounts
- Average current rates exceed 22%, with some exceeding 29%
- Estimated $12 billion in annual interest savings for consumers
- Could reduce credit card issuer revenues by billions annually
Former President Donald Trump has announced a proposed one-year cap on credit card interest rates at 10%, a sweeping policy initiative aimed at reducing household debt and curbing what he describes as exploitative lending practices. The proposal, detailed during a public event in Tampa, Florida, would require all credit card issuers, including JPMorgan Chase, Bank of America, and Capital One, to limit APRs to 10% for the duration of the policy, regardless of borrower risk or market conditions. The measure, if enacted, would apply to both new and existing accounts and could affect over 90 million Americans who hold credit cards. Currently, average credit card interest rates exceed 22%, with some premium cards charging over 29%. A 10% cap would represent a significant reduction, potentially saving cardholders an estimated $12 billion in interest payments annually, according to independent financial modeling. The proposal is expected to draw sharp reactions from financial institutions and credit rating agencies. Industry analysts suggest the cap could strain card issuer profit margins, particularly for those with high-risk portfolios. JPMorgan Chase, the largest U.S. credit card lender, reported $56 billion in credit card interest revenue in 2024, a figure that could be substantially reduced under the proposed policy. Market participants are monitoring the development closely. The proposal has already influenced Treasury yields, with the 10-year note rising 6 basis points in early trading. Credit card stock indices, including the S&P 500 Financials sector, saw a 1.4% decline in midday sessions. The policy, if pursued, would likely become a central issue in the 2024 presidential race.