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Fortune • • business
Key Points:
- The White House, led by President Trump, has demanded credit card companies cap interest rates at 10%, but no specific consequences have been outlined for companies that fail to comply.
- Research indicates that capping credit card rates at 10% could save Americans about $100 billion annually, though the credit card industry would take a hit and might reduce rewards and perks.
- Bank lobbyists and executives have expressed opposition to the rate cap, warning it could restrict credit and harm the economy, but some have signaled willingness to collaborate with the administration.
- Without new legislation or an executive order, Trump may rely on political pressure to compel credit card companies to lower rates, similar to previous demands made to pharmaceutical and tech industries.
