Wall Street Recoils as Trump Announces 10% Rate Cap

Wall Street is reeling after Donald Trump announced a surprise plan to cap credit card interest rates at 10%. The policy, revealed on Truth Social on Friday night, is scheduled to take effect on January 20. Trump framed the decision as a necessary intervention to stop the “ripping off” of American consumers, who are currently paying rates as high as 30%.
The announcement has triggered a fierce backlash from the banking industry. Major financial associations issued a joint statement warning that the cap would be “devastating” for credit availability. They argued that interest rates are a critical tool for managing risk, and that capping them at 10% would force banks to stop lending to millions of consumers. The industry groups predicted that the policy would do more harm than good.
Despite the warnings, the move has proven popular with voters. With credit card debt at a record $1.17 trillion, many Americans are desperate for relief. Senator Josh Hawley praised the announcement, calling it a “fantastic idea.” However, Senator Elizabeth Warren was less impressed, dismissing the move as a “joke” without Congressional approval.
Legal experts are also raising questions about the president’s authority. Implementing a price cap on private contracts is a complex legal matter, and it is unclear if Trump has the power to do so unilaterally. Senator Warren argued that true reform requires legislation, not just executive decrees.
Investor Bill Ackman added his voice to the chorus of concern, warning that the cap could lead to mass cancellations of credit cards. He predicted that banks would move quickly to protect their bottom lines, potentially leaving millions of Americans without access to credit. As the standoff between Trump and Wall Street continues, the future of the 10% cap remains in doubt.