Summary
President Donald Trump has proposed a temporary cap on credit card interest rates at 10% for one year to help U.S. consumers. The proposal aims to address high-interest rates charged by credit card companies, but it faces criticism from banking groups who warn it could limit access to credit.
Key Facts
- President Trump announced a plan to cap credit card interest rates at 10% for one year.
- The proposal aims to reduce the financial burden on Americans using credit cards.
- Credit card debt in the U.S. is at a record $1.23 trillion, with rising delinquencies and defaults.
- Banking groups warn that the cap could reduce credit availability for families and small businesses.
- Experts are divided on the proposal, questioning its enforceability and potential negative impacts.
- Some believe a rate cap could help people pay off existing credit card debt more quickly.
- Opponents argue that the cap might push consumers toward more costly and less regulated lending options.
