Overview
- National Economic Council Director Kevin Hassett said the administration is in talks with major banks about offering voluntary credit cards capped at 10% for qualifying customers.
- There is no announced mechanism requiring compliance on Jan. 20, and regulatory experts say a binding nationwide cap would likely need legislation.
- Reuters and other outlets reported the White House is weighing executive options while pressing lenders, with no specifics on enforcement.
- Bank leaders from JPMorgan, Citigroup, and Bank of America warned a cap would restrict access to credit and weigh on the economy as financial stocks fell and earnings calls focused on the issue.
- Research amplified by the White House estimates roughly $100 billion in annual interest savings from a 10% cap, while industry groups project tighter underwriting, fewer rewards, and possible account closures; fintech Bilt introduced a card offering a one-year 10% cap on new purchases.