Financial Sector Pushback: The Controversial Credit Card Interest Rate Cap

U.S. banks oppose President Trump's proposed 10% cap on credit card interest rates, arguing it would restrict credit access for millions and hurt the economy. Industry insiders fear it would make credit cards unprofitable, while some studies suggest consumers could save $100 billion annually.

Financial institutions and banks across the U.S. are resisting President Donald Trump's proposal to cap credit card interest rates at 10%, citing potentially adverse effects on credit accessibility for American households and small businesses.

The proposal, perceived as a response to voter concerns about the cost of living, lacks a clear implementation strategy, with experts indicating congressional action is necessary. Industry figures warn that such a cap could harm the economy by reducing credit access and profitability for banks.

Critics argue the cap would push up annual fees for borrowers and curtail consumer spending. In contrast, some studies indicate potential savings for consumers, but emphasize possible reductions in credit card rewards.

(With inputs from agencies.)