Credit Card Cap: Trump's New Plan to Ease Financial Burden

President Donald Trump recently proposed a temporary 10% cap on credit card interest rates, sharing the idea on his social media platform, Truth Social. The proposed cap is set to start on January 20, marking the one-year anniversary of his return to the White House. However, details on how this cap would be implemented or whether it would be voluntary for credit card companies remain unclear.

Making Things More Affordable for Americans

Trump stated that the cap is aimed at making life more affordable for Americans, as many struggle with rising living costs. He also blamed his predecessor, Joe Biden, for the high credit card rates.

A Shift from Previous Stance

This proposal marks a change from Trump's previous stance. Last year, his administration removed an $8 credit card fee limit introduced by the Biden administration, which was expected to save families significant amounts annually.

Banking Industry Concerns

It remains uncertain whether banks will support Trump's new idea. Credit card interest is a major source of income for banks. If rates are capped, banks might restrict credit access, particularly for those with lower incomes or poor credit scores, potentially widening the wealth gap in America.

Broader Economic Proposals

Trump's announcement follows a week of similar economic proposals, including buying mortgage bonds to lower home costs and banning large investors from purchasing single-family homes.

Public Skepticism

Despite these proposals, many Americans remain unconvinced that Trump's policies are improving the economy. A recent poll indicated that most Americans believe Trump's policies have worsened economic conditions. Additionally, the New York Fed reported an all-time low in Americans' expectations for finding a job.

Reducing CFPB's Power

The Trump administration has also been working to reduce the power of the Consumer Financial Protection Bureau (CFPB), which oversees the financial services industry and handles consumer complaints. The CFPB has been a longtime target of conservatives, including Trump.