Trump Seeks One-Year 10% Interest Rate Ceiling for Credit Cards
Washington D.C., Saturday, 10 January 2026.
President Trump calls for a one-year 10% interest rate cap starting January 20, a drastic reduction from the current market average of 22.3%.
Presidential Directive on Consumer Lending
In a post on Truth Social this Friday, President Donald Trump declared that the American public is being “ripped off” by high interest rates, announcing his intention to impose the cap effective January 20, 2026 [1][2]. This date coincides with the one-year anniversary of his return to the White House [2][5]. While the President framed the move as a necessary step for “AFFORDABILITY,” he did not immediately specify the mechanisms for enforcement or whether he expects voluntary compliance from financial institutions [1][3][5]. This proposal acts on a pledge Trump originally made during the 2024 election campaign, a delay that has previously drawn criticism from Democratic lawmakers [3].
Analyzing the Rate Gap
The proposed 10 percent limit represents a sharp divergence from current market realities. As of November, Federal Reserve data indicated that the average annual percentage rate (APR) on credit card accounts stood at 22.3 percent, a figure that has climbed significantly from 12.9 percent in late 2013 [4]. Implementing Trump’s cap would require the industry to slash average rates by 12.3 percentage points. The President explicitly blamed the administration of former President Joe Biden for allowing rates to escalate to between 20 and 30 percent, claiming these rates “festered unimpeded” during the previous administration [1][2].
Regulatory Authority and Legislative Precedent
Financial experts and political analysts are currently scrutinizing the legal viability of this directive. It remains unclear what specific authority the President could leverage to unilaterally impose such a cap without congressional authorization [4]. The Consumer Financial Protection Bureau (CFPB) holds primary jurisdiction over credit card practices; however, the Trump administration has previously slashed the agency’s funding and suggested it should not exist [4][5]. Ironically, Acting Director Russell Vought only requested funds for the agency this past Friday [4]. Furthermore, the administration has actively worked to dismantle the CFPB, which has been a long-standing target of conservatives [5].
Bipartisan Parallels in Policy
The President’s proposal aligns with efforts from across the political aisle. Legislation previously sponsored by Senator Bernie Sanders (I-Vt.) and cosponsored by Senator Josh Hawley (R-Mo.) sought to impose a similar 10 percent cap, though that proposal extended for five years rather than the one-year duration Trump is seeking [4]. While the Military Lending Act currently caps loans at 36 percent for active-duty service members, the financial industry has historically mounted fierce resistance to broader interest rate caps [4].
Populist Economics Amidst Economic Discontent
This announcement is the latest in a series of populist economic moves by the President aimed at addressing the cost of living. Earlier this week, Trump posted about banning institutional investors from purchasing single-family homes and ordering representatives to buy mortgage bonds to lower housing costs [5]. These declarations appear to be a direct response to lingering economic dissatisfaction; a recent CNN poll revealed that 61 percent of Americans believe Trump’s policies have “worsened economic conditions” in the country [5].
Industry Silence and Past Interventions
The President’s approach contrasts with that of his predecessor, Joe Biden, whom Trump criticized in his announcement [2][5]. The Biden administration had attempted to address credit card costs by capping late fees at $8—a move the CFPB estimated would save families over $10 billion annually—but that effort was blocked by a federal judge [5]. As of Saturday, major issuers such as JPMorgan, Bank of America, and American Express have not yet responded to requests for comment regarding the President’s new demand [3].