Wall Street's Worst Nightmare Is a Trump-Warren Alliance
Summary
President Donald Trump and Senator Elizabeth Warren have both supported limiting credit card interest rates, despite their broader political differences. If Warren becomes chair of the Senate Banking Committee, she could use its agenda-setting and investigative powers to pursue measures opposed by banks, while Trump’s support for some proposals could add political pressure.Key Facts
- Trump proposed a one-year cap of 10 percent on credit card interest rates in January.
- Warren supported the proposal and said Congress could pass it if Trump helped secure votes.
- Republican Senator Josh Hawley and independent Senator Bernie Sanders introduced a bill for the same 10 percent cap in February 2025.
- The proposal has not become law.
- The American Bankers Association estimated that a rate cap could lead lenders to close or restrict 74 to 85 percent of existing credit card accounts.
- Banks argue that a cap could make lending to riskier customers unprofitable and limit their access to credit.
- Warren pressed federal regulators to lower borrowing costs after Trump’s proposed deadline passed.
- Trump signed an executive order in August 2025 directing regulators to examine claims that banks denied services for political or religious reasons or lawful business activities.
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