Overview
- President Trump called for a one-year 10% ceiling on credit card interest and set Jan. 20 as his target for issuers to comply.
- Executives at JPMorgan, Citigroup, Bank of America and Wells Fargo warned they would restrict or close accounts rather than offer capped rates, citing harm to credit access and the broader economy.
- Bilt Rewards rolled out three cards that cap purchase APRs at 10% for the first year, with rates afterward rising to about 26.74% to 37.47%, in a voluntary move tied to new products.
- Policy experts report the White House lacks authority to impose a cap unilaterally, and bills from Sens. Bernie Sanders and Josh Hawley remain stalled as Speaker Mike Johnson and other leaders voice doubts.
- Analyses conflict, with academic work projecting large consumer savings while industry and bank analysts warn of reduced lending, weaker rewards and a potential hit to consumer spending.