Trump floats one-year 10% credit-card rate cap, offers zero enforcement detail, just talk

Trump's Proposal on Credit Card Rate Cap

President Trump has proposed a cap of 10% on U.S. credit card interest rates for one year, effective January 20, 2026. This proposal stems from his assertion that consumers are being 'ripped off' and is part of a broader affordability narrative. However, the lack of specific enforcement details raises significant questions on the feasibility of implementation.

Current Credit Card Rate Situation

According to Federal Reserve data, the current credit card rates stood at 22.30% as of November 2025, indicating that Trump's proposition represents a substantial cut. Nonetheless, the lack of clear legislative pathways means that market participants are likely more concerned with 'how' this could be enacted rather than the proposal's intent.

Political Context

This proposal emerges in the context of declining popularity for Trump, threatening Republican majorities in Congress. Past proposals for capping interest rates have garnered bipartisan interest but have never converted into law. Thus, it appears that this announcement may serve more as political messaging than an actionable policy change, with limited immediate market repercussions expected.