Trump announces one-year 10% cap on credit card interest rates.

President Donald Trump said he will cap credit card interest rates at 10% for one year starting January 20; he gave no details on how the limit would be implemented, and lawmakers and banking groups questioned whether congressional action would be needed.

President Donald Trump announced a one-year cap that would limit credit card interest rates to 10%, saying it would take effect on January 20. He made the statement on his social platform but did not provide details on how the government would implement or enforce the cap. The move revives a campaign pledge amid rising U.S. credit card debt and follows earlier legislative efforts to cap rates. Lawmakers, regulators and industry groups responded with skepticism about how the cap could be enacted. Key details: - The president posted that a 10% cap would begin on January 20, but offered no implementation or enforcement specifics. - Researchers cited in reporting estimated a 10% cap could reduce consumer interest payments by roughly $100 billion a year. - Senators Bernie Sanders and Josh Hawley introduced a bipartisan bill in February 2025 proposing a 10% cap for five years. - Banking and industry groups issued a joint statement saying a 10% cap would reduce credit availability and could push consumers toward less regulated, costlier options. - Senator Elizabeth Warren and others said the administration lacked a clear path to impose the cap without congressional approval, and some private commentators warned of potential lender responses. Summary: Researchers and analysts reported that a 10% cap could substantially lower consumer interest costs while also prompting changes to credit products. Banking groups warned of reduced credit availability and shifts toward alternative lenders. A clear route to implement the cap was not provided, and whether Congress will act is undetermined at this time.