As Trump's deadline for a cap on credit card rates looms, banks have only questions and no answers
AP News • • business
Key Points:
- President Trump has demanded that credit card companies cap interest rates at 10% by January 20, but the White House has not specified consequences for non-compliance, leaving uncertainty among consumer groups, politicians, and bankers.
- Research indicates that a 10% cap could save Americans about $100 billion annually in interest, though it would impact the credit card industry's profitability and potentially reduce rewards and perks.
- Bank lobbyists and executives oppose the cap, arguing it would restrict credit and harm the economy, yet some express willingness to collaborate with the administration on affordability issues.
- Without new legislation or executive orders, Trump's approach may rely on political pressure, similar to his past demands on pharmaceutical and tech industries, but Congress has shown little interest
