In a late-night bombshell on Truth Social, Donald Trump has announced a sweeping plan to cap credit card interest rates at 10%. The post, which appeared on Friday, declared that the new policy would take effect on January 20. Trump used the platform to bypass traditional media and speak directly to his base, railing against the “ripping off” of the American public by high-interest lenders.
The announcement taps into a deep vein of economic anxiety. With credit card debt at an all-time high of $1.17 trillion, millions of Americans are struggling to keep their heads above water. Trump’s message was simple and direct: the government is stepping in to lower your bills. He explicitly linked the high rates to the “Sleepy Joe Biden Administration,” turning the policy into a partisan cudgel.
But the banking industry is not going down without a fight. A coalition of major financial groups issued a statement warning that the cap would be “devastating” for credit access. They argued that price controls on credit always lead to shortages, meaning fewer people will be able to get a credit card. The groups predicted that the policy would hurt the very working-class families Trump claims to champion.
Legal experts and lawmakers are also skeptical. Senator Elizabeth Warren called the announcement a “joke” and questioned Trump’s authority to enforce it. She noted that the president cannot simply rewrite the laws of the financial market via social media. Warren urged for a legislative solution, contrasting her approach with what she views as Trump’s performative politics.
Despite the skepticism, the move has energized Trump’s supporters. Senator Josh Hawley praised the announcement, aligning himself with the president’s interventionist streak. As the dust settles, the focus shifts to implementation: how will the administration force banks to comply with a Truth Social decree?
