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Donald Trump called for credit card interest rates to be capped at 10 per cent as his administration seeks to address Americans’ concerns about the cost of living ahead of closely watched midterm elections later this year.
In a post on social media on Friday evening, the president called for the cap to come into force on January 20, the anniversary of his inauguration, and said it should remain in place for one year.
“We will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%,” Trump said. “I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%.”
It was not clear whether Trump would take any regulatory steps to enforce a cap. The White House did not immediately respond to a request for comment.
US credit card debt is about $1.1tn, with an average interest rate of roughly 20 per cent, according to data from the St Louis Federal Reserve.
Billionaire investor Bill Ackman described the proposal as “a mistake” in a social media post on Friday night.
Trade associations for the banking industry did not immediately respond to requests for comment.
The president had spoken about capping credit card interest rates while on the campaign trail in 2024.
In February, senators Bernie Sanders, a leftwing independent, and Republican Josh Hawley, proposed legislation that would cap credit card interest rates at 10 per cent, but it has not been enacted into law.
The announcement comes as Trump has increasingly sought to lean on big businesses in order to achieve his policy goals.
The president on Wednesday said he wanted to ban big investors from buying single-family homes in the US, posing a challenge to private capital groups that invest heavily in real estate.
He also said he would “not permit” US defence companies to issue share buybacks or dividends until they responded to his call for military equipment to be produced more quickly and reliably.
Trump issued an executive order on Wednesday directing the defence department to add clauses to contracts with military suppliers preventing them from linking “executive incentive compensation” to “short-term financial metrics”.
The order also called for provisions blocking share buyback and dividends “during a period of underperformance . . . insufficient investment, or insufficient production speed” as determined by defence secretary Pete Hegseth.
The White House has sought to address voter concerns about affordability and cost of living after Democrats surged ahead in off-cycle state and local elections last year.
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