Trump proposes capping credit card rates at 10%, as banks warn of economic risk

US President Donald Trump has proposed a one-year cap on credit card interest rates at 10% to ease the financial burden on Americans amid rising prices. The dangers of such a move are explained. Reuters и CNBC.

He announced his decision on January 10, 2026, in a post on Truth Social, without specifying how exactly it would be implemented. Experts believe Congressional approval may be required to implement such a restriction.

Currently, the average interest rate in the US is around 25%, and on some cards it reaches 30–31%. This means that if a person currently pays $25 in interest per year for every $100 of debt, then at 10%, it's only $10.

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For Trump, such a statement is an opportunity to show voters that he is fighting rising prices and helping ordinary people who are struggling to pay their credit cards (and there are a lot of them right now – millions of Americans are paying only the minimum payment and drowning in interest).

However, bankers are, to put it mildly, not happy with such ideas. The proposal provoked a sharp market reaction: on January 12, financial company shares fell in pre-market trading. Capital One lost 10%, Citigroup 4%, JPMorgan Chase nearly 3%, Bank of America 2,36%, Visa 1,94%, and Mastercard 2,21%. Meanwhile, Affirm shares rose, although exact figures were not provided.

Banks and financial institutions opposed the initiative, arguing that it would harm millions of households and small businesses by depriving them of access to credit. The Electronic Payments Coalition, representing banks and payment networks, stated that 82–88% of open credit accounts with a score below 740 would be subject to the cap—they would be closed or severely restricted. Coalition Chairman Richard Hunt noted, "Government price caps may sound attractive, but in reality, they will hurt families, limit opportunities, and weaken the economy."

Financial groups warn that banks will compensate for losses by raising annual fees, reducing card rewards, and imposing additional monthly fees. This will slow consumer spending and negatively impact the economy overall. According to the Consumer Financial Protection Bureau, average credit card rates will reach their highest level since 2015 in 2024: 25,2% for general-purpose cards and 31,3% for store cards. The share of borrowers making only the minimum payment has also risen to a record high.

Morningstar analyst Michael Miller doubts the proposal will be implemented: "It's more of a call to action than a concrete measure. If the cap is imposed, the profitability of loan portfolios will collapse, as many of them have excessively high credit risk costs."

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Meanwhile, a September study by the Vanderbilt Policy Accelerator found that a 10% cap could save Americans $100 billion annually, even though it would reduce rewards for borrowers with credit scores of 760 and below. Brian Shearer, director of the Center for Competition and Regulatory Policy, noted, "We often hear that banks will close accounts. But their profits are enormous—there's plenty to cut."

Subprime borrowers (those with low credit scores) will be hit the hardest, critics say.

Secretary of State Marco Rubio backed Trump, saying such organizations are "poorly managed, redundant, and wasteful" and that their interests are contrary to American interests.

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