Credit Card Interest Rate Cap Sparks Debate in the U.S.

U.S. banks oppose President Trump's proposal to cap credit card interest rates at 10%, fearing millions may lose access to credit. Critics argue the cap would hurt the economy and consumers. Research suggests a cap could save consumers money, but reduce rewards for some cardholders.

U.S. banks and financial institutions are pushing back against President Donald Trump's recent proposal to impose a 10% cap on credit card interest rates. They argue such a move would lead to millions of American households and small businesses losing access to credit.

President Trump's call for a cap comes amid pressure to address cost-of-living concerns. Financial groups, taken off-guard, rebuffed the proposal, warning it could result in higher fees and restricted credit for consumers and subprime borrowers.

While some research indicates that a cap could save consumers money, banks argue it would make credit cards unprofitable and impact consumer spending, posing risks to the economy.

(With inputs from agencies.)