Trump calls for 1-year 10% cap on credit card interest rates
Trump blames the Biden administration for allowing rates to rise as high as 30%
President Donald Trump announced Friday he is calling for a one-year cap limiting credit card interest rates to 10%.
Trump blamed the Biden administration for allowing rates to rise as high as 20–30%, adding that Americans were being "ripped off" by credit card companies.
"Please be informed that 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, which festered unimpeded during the Sleepy Joe Biden Administration," Trump wrote on Truth Social.
"AFFORDABILITY! 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%."
EX-TRUMP ADVISOR RAISES ALARM OVER BIPARTISAN CREDIT CARD PLAN THAT COULD HURT AMERICANS
President Donald Trump announced Friday he is calling for a one-year cap on credit card interest rates. (iStock; Anna Moneymaker/Getty Images / Fox News)
Trump noted that the cap would coincide with the one-year anniversary of his return to the White House.
Sen. Bernie Sanders, I-Vt., introduced a bill in February 2025 that would cap credit card interest rates at 10%, but the changes would sunset on Jan. 1, 2031, making it nine years longer than the proposal outlined by Trump.
President Donald Trump announced Friday he would seek to rein in credit card interest rates with a proposed one-year cap. (Jabin Botsford/The Washington Post via Getty Images / Getty Images)
Earlier Friday, before Trump announced his plan, Sanders smeared Trump for failing to cap credit card interest rates.
"Trump promised to cap credit card interest rates at 10% and stop Wall Street from getting away with murder," Sanders wrote in an X post. "Instead, he deregulated big banks charging up to 30% interest on credit cards. The result? Last year, JPMorgan CEO Jamie Dimon made $770 million. Unacceptable."
President Donald Trump called for a one-year cap on credit card interest rates, blaming high costs on the Biden administration. (Brent Lewin/Bloomberg via Getty Images / Getty Images)
TRUMP'S CALL FOR $1.5 TRILLION DEFENSE BUDGET WOULD ADD TRILLIONS TO DEBT: CRFB
Sen. Elizabeth Warren, D-Mass., the top Democrat on the Banking, Housing and Urban Affairs Committee, reacted to Trump's proposal, calling it a "joke."
"Begging credit card companies to play nice is a joke," Warren said in a statement. "I said a year ago if Trump was serious I’d work to pass a bill to cap rates. Since then, he’s done nothing but try to shut down the CFPB."
Warren accused Trump of not caring about affordability, adding that "Americans know a fraud when they see one."
Billionaire hedge fund manager Bill Ackman reacted to Trump's announcement, calling the president's proposal a "mistake."
"Without being able to charge rates adequate enough to cover losses and to earn an adequate return on equity, credit card lenders will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates higher than and on terms inferior to what they previously paid," he wrote on X.
Sen. Josh Hawley, R-Mo., quickly voiced support for the proposal on X, saying he "can’t wait to vote for this."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The White House and Sanders' office did not immediately respond to FOX Business' request for comment.