Trump's Credit Card Interest Rate Cap Faces Legislative Hurdles

U.S. President Donald Trump proposes a one-year cap on credit card interest rates at 10%, effective January 2026. However, the plan lacks concrete legislative backing, facing criticism from lawmakers like Senator Elizabeth Warren. Bipartisan efforts are underway to address high rates, but congressional approval remains uncertain.

U.S. President Donald Trump announced a plan to cap credit card interest rates at 10% for a year, effective January 2026. However, details on implementation and company compliance remain unclear, sparking skepticism among lawmakers.

Despite Trump's campaign promise, critics argue that such a cap requires congressional approval, which is currently stalled due to a partisan divide. Lawmakers from both parties, including Senator Elizabeth Warren and Senator Bernie Sanders, have shown interest in similar legislation.

Major banks and credit card companies have yet to comment on the proposal. Meanwhile, banking advocacy groups warn that a 10% cap could limit credit availability, pushing consumers toward alternative financial services.

(With inputs from agencies.)