Trump's 10% Interest Rate Cap Sparks Debate

U.S. President Donald Trump announced a plan to cap credit card interest rates at 10% for one year starting January 20. Despite the pledge, he did not explain how it would be enforced, sparking criticism and legislative debate over its feasibility without Congressional approval.

U.S. President Donald Trump announced on Friday his intention to impose a one-year cap on credit card interest rates, setting the limit at 10% starting January 20. However, Trump failed to provide a clear plan on implementing this proposal, or how companies would be made to comply.

During the 2024 election campaign, Trump reiterated his pledge, but analysts were skeptical, noting that such a measure requires Congressional approval. The Republican Party holds a slim majority in both legislative chambers, yet no specific bill has gained traction, despite bipartisan interest.

Critics, including Senator Elizabeth Warren, dismissed Trump's call as ineffective without legislative backing. Although some lawmakers have introduced proposals to cap rates, Trump's lack of support for any specific legislation has fueled opposition and debate.

(With inputs from agencies.)