President Donald Trump called for a one-year limit, setting credit card interest rates at 10%, saying the American public is being “ripped off.” The move has drawn criticism from both sides of the political spectrum, with Sen. Sen. Bernie Sanders (I-Vt.) called it “unacceptable.”
Trump announced the limit on Friday from January 20 in a post on his Truth Social account.
However, Trump’s plan does not include details on how it will be implemented and enforced.
The issue of high credit card interest rates has long been a concern, especially in the U.S. economy majority of Americans do not have sufficient savings for emergencies. The lack of financial security, combined with high interest rates, has put many households under great pressure.
This has also become a political liability for Trump and the Republicans. The president has blamed his predecessor, the former president Joe Bidenfor high credit card rates.
Sanders calls cap ‘unacceptable’
Sanders, a former presidential candidate, criticized the move, saying it runs counter to Trump’s previous pledge to rein in Wall Street and impose a 10% cap on interest rates.
Previously, following Donald Trump’s re-election in late 2024, Sanders supported Trump’s proposal to cap credit card interest rates at 10% and said he plans to introduce legislation supporting the measure.
Sanders also pointed to the significant profits big banks have made under the new rules JPMorgan (NYSE:JPM) CEO Jamie Dimon‘s wealth increase of $770 million by 2025.
He wrote on X: “Last year JPMorgan CEO Jamie Dimon made $770 million. Unacceptable.”
Sen. Elizabeth Warrena member of the Senate Banking Committee, said Trump’s promises about capping credit card rates are empty, criticized his CFPB actions and called him a fraudster, ignoring affordability.
Ackman warns of consumer risks
Billionaire hedge fund manager Bill Ackman also criticized President Trump’s decision, calling it a mistake and indicating his disagreement with the administration’s approach.
He warned that if credit card issuers cannot charge rates high enough to cover losses and earn a reasonable return, they will cancel millions of consumer cards, forcing those consumers to turn to loan sharks who charge higher rates and worse terms than before.
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Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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