Trump Proposes 10% Cap on Credit Card Rates

At a rally in New York, Donald Trump proposed a temporary cap on credit card interest rates at 10% to aid working Americans, arguing that current rates, averaging 21.5%, are too high. Critics from the banking industry warn that such price controls could limit access to credit, disproportionately affecting lower-income individuals. They argue that banks may reduce lending to those deemed higher risk, effectively leaving many without credit options. The Federal Reserve's recent interest rate cut, the largest in 16 years, aims to alleviate economic pressure on consumers, coinciding with rising credit card debt and delinquencies. Trump's plan aligns with previous proposals by other lawmakers but faces significant opposition from financial institutions. The implementation of such a cap would require legislative approval, raising questions about its feasibility.