President Donald Trump is calling for a massive reduction in credit card interest rates.
“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 posted Friday on Truth Social, adding “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%,” Trump posted.
“Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! PRESIDENT DONALD J. TRUMP,” he wrote.
Banks banded together to denounce the idea, according to The Washington Post.
The Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a joint statement saying a cap “would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards.”
“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” the statement said.
A 10 percent cap was proposed last year by Republican Sen. Josh Hawley of Missouri and Independent Sen. Bernie Sanders of Vermont.
“Fantastic idea. Can’t wait to vote for this,” Hawley posted on X following Trump’s post.
Fantastic idea. Can’t wait to vote for this https://t.co/VcGy9fDZiU
— Josh Hawley (@HawleyMO) January 10, 2026
The Washington Post noted that credit card debt stands at $1 trillion.
Bill Ackman, CEO of Pershing Square Capital Management, said a cap would lead to cards being canceled, according to Yahoo Finance.
“This is a mistake President,” Ackman wrote in an X post he later deleted.
“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.”
Ackman issued a revised post on Saturday.
“I think President @realDonaldTrump’s goal of reducing credit card interest rates is a worthy and important one. My concern about capping rates at 10% is that doing so will inevitably cause millions of Americans to have their cards cancelled as credit card companies lose the ability to adequately price subprime credit risk,” he wrote.
“Consumers denied credit cards will be forced to turn to loan sharks whose rates and terms will be vastly worse for borrowers. While 20% or more is a high rate, loan sharks can charge multiples of these rates, and the cost of default can be physical harm or worse,” he continued.
I think President @realDonaldTrump’s goal of reducing credit card interest rates is a worthy and important one. My concern about capping rates at 10% is that doing so will inevitably cause millions of Americans to have their cards cancelled as credit card companies lose the…
— Bill Ackman (@BillAckman) January 10, 2026
“I have no investments in the credit card space so I am not the expert, but the market for credit cards appears highly competitive. The best way to bring down rates would be to make it more competitive by making the regulatory regime more conducive to new entrants and new technologies,” Ackman wrote.
“I commend the President for his focus on affordability for all Americans. Mortgage spreads and rates are coming down significantly due it his actions. Finding a way to bring down credit card rates without taking credit away from many Americans would have a very positive impact on the most disadvantaged Americans,” he added.
Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.
