Summary
President Trump suggests capping credit card interest rates at 10%, which he believes could save Americans billions of dollars. This idea is popular among some consumer advocates but faces opposition from banks and has low chances of becoming law without new legislation. The proposal comes amid concerns about high interest rates and credit card fees in the U.S.
Key Facts
- President Trump proposes a 10% cap on credit card interest rates.
- Analysis suggests a 10% cap could save Americans $100 billion.
- The current average interest rate on credit cards is 25.2%.
- Banks argue the cap could limit credit availability and reduce rewards programs.
- The proposal requires new legislation, which is unlikely to pass.
- Past similar bills, like one from Senators Sanders and Hawley, have not progressed in Congress.
- Interest rates on credit cards rose sharply, and annual interest fees in 2024 were $160 billion.
- Critics worry a cap could push consumers to use higher-cost options.
