President Donald Trump urged U.S. lawmakers to pass legislation capping credit card interest rates at 10% for one year, arguing the change would lower borrowing costs for consumers. Speaking at the World Economic Forum in Davos, Trump pointed to credit card APRs that can exceed 30% and said Congress should act after he previously called on banks to lower rates voluntarily in a social media post earlier this month. Despite the push, the proposal faces a steep path in Congress, where past efforts to impose similar caps have struggled to gain traction.
Bank shares rose after the comments, with the KBW Bank Index gaining and major card lenders moving higher. Analysts and industry executives remain skeptical that a 10% cap will secure enough bipartisan support, citing resistance within Trump’s own party and concerns that price controls could reduce credit availability, particularly for lower-credit-score borrowers. While Trump suggested lenders who refuse to comply could be “in violation of the law,” banks have argued privately and publicly that existing pricing already conforms to current regulations, setting up a policy fight that may generate headlines before it produces legislation.
