Overview
- National Economic Council Director Kevin Hassett said the administration is talking with major banks about voluntarily offering new “Trump cards” capped at 10% interest for qualifying customers.
- Reuters and the Associated Press report that the White House has provided no enforcement mechanism ahead of the Jan. 20 date, with Press Secretary Karoline Leavitt describing the cap as the president’s expectation without specifying consequences.
- News outlets including The Straits Times, citing unnamed sources, reported the White House is weighing an executive action to advance the cap, though regulatory experts say a binding, nationwide limit would most likely require congressional legislation.
- Bank leaders at JPMorgan, Bank of America and Citigroup warned on earnings calls that a 10% cap would restrict access to credit and could harm the economy, and financial stocks fell following the president’s announcement.
- Fintech firm Bilt introduced cards that cap interest at 10% for a year on new purchases, illustrating a potential voluntary path, while research cited by the administration estimates roughly $100 billion in annual consumer interest savings alongside reduced rewards and tighter underwriting.