Credit Card Interest Rates by Command

Truth Social: Please be informed that we will no longer let the American Public be "ripped off" by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! PRESIDENT DONALD J. TRUMP

Understanding Credit Card Risk

It is unclear whether credit card companies will comply. What is clear is Trump has no legal authority to make this demand.

But if credit companies comply with this illegal order, rates will drop, but so will availability of credit.

Credit is priced by risk. Credit card companies will not take losses just to please the would-be dictator making these economically-illiterate demands.

Banks Respond to Proposed Cap on Credit Card Interest Rates

The Bank Policy Institute writes Banks Respond to Proposed Cap on Credit Card Interest Rates

"We share the President's goal of helping Americans access more affordable credit. At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help. If enacted, this cap would only drive consumers toward less regulated, more costly alternatives. We look forward to working with the administration to ensure Americans have access to the credit they need."

You might think that banks are operating in their own self interests. And you would be correct.

However, their response is accurate. Banks will curtail credit rather than take losses.

The credit card industry is very competitive. People can shop around for the best rates and transfer balances. That would end.