Bill Ackman Critiques Trump's Proposed Interest Rate Cap

U.S. hedge fund manager Bill Ackman expressed concerns over President Donald Trump's proposal to cap credit card interest rates at 10%, warning it could lead to widespread cancellation of credit cards as lenders struggle to maintain profitability.

U.S. hedge fund manager Bill Ackman has raised concerns over President Donald Trump's recent proposal to limit credit card interest rates to 10% starting January 20. Ackman described the proposal as a mistake, suggesting it could backfire on consumers.

He argued that without the ability to set rates high enough to cover losses and secure a reasonable return on equity, lenders may choose to cancel cards for millions of consumers. This could limit access to credit for those who need it most.

Ackman's critique, shared in a post on platform X, underscores the challenges facing the credit card industry as it navigates regulatory changes while balancing consumer risk and profitability.

(With inputs from agencies.)