Summary
President Donald Trump has proposed a one-year cap of 10% on credit card interest rates, arguing that high rates are unfair to Americans. This proposal comes as an effort to lower borrowing costs, which currently average over 20%. The plan has received mixed reactions, with some fearing it could limit credit access.
Key Facts
- President Trump announced a proposal to cap credit card interest rates at 10% for one year.
- Nearly 74% of Americans have credit cards, accounting for 70% of retail spending.
- Current average credit card interest rates are over 20%.
- Bipartisan legislation in the Senate and House has previously aimed to set a 10% cap on credit card interest rates.
- Critics say a cap could make it harder for people to get credit as lenders tighten borrowing criteria.
- Some financial groups argue that lower interest rates could reduce credit availability for families and businesses.
- President Trump had proposed similar ideas during his 2024 election campaign.
