In a fascinating display of political maneuvering, Donald Trump has announced a 10% cap on credit card interest rates, effectively co-opting a policy championed by Senator Bernie Sanders. The announcement came just hours after Sanders criticized Trump on social media for failing to rein in Wall Street. Trump’s response was a late-night post declaring that the “American Public” would no longer be exploited by high interest rates, setting a start date for the new policy of January 20.
The policy itself is almost identical to a bipartisan bill introduced by Sanders and Republican Senator Josh Hawley in February 2025. That bill, which stalled in Congress due to heavy opposition from banking lobbyists, aimed to stop what the senators called “usury” and “extortion” by financial institutions. By announcing the cap via social media, Trump has bypassed the legislative process entirely, claiming the mantle of consumer protector while blaming the previous Biden administration for the current economic climate.
The economic context for this move is severe. Credit card debt has exploded to over $1.17 trillion, and interest rates have climbed steadily. For many Americans, the 10% cap sounds like a lifeline. However, financial experts warn that the reality may be more complex. Industry groups have stated that a cap would likely lead to a contraction in credit availability, meaning that while rates might be lower, fewer people would actually qualify for a credit card.
Senator Elizabeth Warren was quick to point out the potential hollowness of Trump’s declaration. She noted that without Congressional approval, the president has limited tools to enforce such a cap on private companies. Warren, a long-time critic of big banks, argued that Trump’s past actions—such as weakening the Consumer Financial Protection Bureau—contradict his sudden interest in affordability. She suggested that the announcement might be more about optics than substantive policy change.
Meanwhile, Senator Hawley cheered the move, creating a split within the Republican party between populists and free-market traditionalists. While Hawley sees the cap as a victory for working families, others in the financial sector view it as dangerous government overreach. As the implementation date draws near, the clash between Trump’s populist rhetoric and the established financial order is set to intensify.
Sanders Scolds, Trump Acts: The 10% Credit Card Rate Cap Saga
