Trump’s affordability pledge strikes directly at the heart of Wall Street’s profit engine
CNN • • general
Key Points:
- President Donald Trump has proposed a one-year 10% cap on credit card interest rates to address affordability concerns, but the proposal faces skepticism about its effectiveness and potential opposition from Wall Street.
- Major banks and credit card companies warn that such a cap could restrict credit availability, reduce rewards, and harm economic growth, with executives from Citigroup and Bank of America expressing clear opposition.
- Advocates argue the cap could save Americans up to $100 billion annually in interest payments, despite some reductions in credit rewards, and view the proposal as a necessary reform amid record-high credit card debt.
- Critics note the proposal contrasts with Trump’s previous deregulatory actions and suggest he should instead focus on capping late fees and other harmful industry practices
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