Bank Stocks Fall After Trump Proposes 10% Credit Card Rate Cap
Would a 10% credit card rate cap end predatory lending, or destroy access to credit for millions?
Above: Man in restaurant paying using handheld credit card reader in Manhattan, New York City on Sept. 15, 2025. Image credit: Lindsey Nicholson/UCG/Universal Images Group/Getty Images
The Spin
Pro-Trump narrative
Credit card rates near 30% amount to legalized gouging that's been going on for a generation. A 10% cap would end the racket, rein in excess profits and force real competition for consumers. Rewards built on interest from struggling households are unfair, so capping rates resets the market toward transparency and dignity.
Anti-Trump narrative
A 10% cap sounds nice but would wreck average Americans' access to credit. Unsecured lending can't work at that rate, so credit lines get slashed, fees pop up and millions — especially subprime — lose cards, spending and flexibility. The result is a hit to families, small businesses and the broader economy, with risk pushed to costlier, less regulated lenders.
