Title: Trump’s Proposed 10% Cap on Credit Card Interest Rates – A Step Towards Financial Reform? In recent news, President Donald Trump has proposed capping credit card interest rates at 10%, aiming to protect consumers from the high-interest charges that have been a significant issue in recent years. The proposal comes as a response to the rising credit card rates and delinquencies, which have reached an average of 22.3% by November 2025, according to the Federal Reserve. This is a stark contrast from the average rate of 13.9% just a decade earlier. The rise in interest rates can be attributed to several factors, including the high number of delinquencies and the federal reserve’s elevated interest rates over the past few years. Despite three cuts last year, rates remain at 3.5 – 3.75%, which banks and other lenders use as benchmarks for setting mortgage, credit card, and consumer borrowing rates. Trump has expressed his intention to make this cap effective on January 20th, the anniversary of his second-term inauguration, stating that any non-compliance would be considered a violation of the law. However, it remains unclear whether Trump possesses the authority to enforce such a cap without Congress passing legislation. The president has not yet revealed if he plans on working with Congress or taking another path towards implementation. In 2019, Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) introduced a bipartisan bill that aimed to impose a temporary 10% cap on credit card interest rates. Unfortunately, the bill has not progressed further. The House of Representatives also proposed similar legislation in response to the growing concern over high-interest charges. The potential implications of Trump’s proposal are significant, as it could lead to more affordable borrowing options for consumers and reduce financial stress caused by excessive interest rates. If implemented successfully, this cap would be a step towards much-needed financial reform that protects citizens from predatory lending practices. In conclusion, while the feasibility of Trump’s proposal remains uncertain without Congressional support or legislation, it represents an important conversation about consumer protection and financial responsibility in the United States. As more Americans struggle with high credit card rates and delinquencies, a cap on interest rates could be a crucial step towards promoting fair lending practices and ensuring that consumers are not exploited by predatory lenders.
Source: [Original Article](https://www.npr.org/2026/01/12/nx-s1-5675151/trump-credit-card-interest-rate-cap)
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