Donald Trump’s announcement of a 10% cap on credit card interest rates has triggered a split reaction among U.S. lawmakers. The policy, announced on Truth Social with a January 20 start date, has scrambled traditional party lines. Trump framed the move as a way to stop the “ripping off” of Americans, a message that appeals to populists on both sides of the aisle.
Senator Josh Hawley, a Republican, was effusive in his praise. He took to X to call the move a “fantastic idea” and said he couldn’t wait to vote for it (implying he sees it as a legislative effort, though Trump announced it as an executive one). Hawley’s support highlights the growing comfort within the GOP for using government power to intervene in markets for the benefit of working families.
On the other hand, Senator Elizabeth Warren, a progressive Democrat, was scathing. She called the announcement a “joke” and criticized Trump for trying to bypass Congress. Warren argued that “begging” companies to lower rates is ineffective and that true reform requires binding legislation. She also pointed out Trump’s past hostility toward the Consumer Financial Protection Bureau.
Senator Bernie Sanders found himself in the middle. Having just criticized Trump for inaction, he saw the president adopt his own policy of a 10% cap. This creates a strange dynamic where Trump is implementing the agenda of his political rival. The bipartisan nature of the underlying idea—that rates are too high—is clear, but the method of fixing it remains contentious.
The banking industry, meanwhile, is united in opposition. Major financial groups warned that the cap would lead to a reduction in credit availability, regardless of what lawmakers think. As the political debate rages, the economic reality of $1.17 trillion in debt continues to weigh on the American people.