Trump's 10% Credit Card Interest Rate Cap — What's Next?

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President Trump has floated a bold proposal that’s shaking up the financial world — a temporary 10% cap on credit card interest rates for one year, potentially starting as early as January 20. With average U.S. credit card APRs hovering near 24% and some climbing as high as 36%, Trump argues the move would protect Americans from being “ripped off.”

But is this proposal a win for consumers — or could it backfire?

In this video, we break down:
- Why credit cards are a lifeline for millions of Americans covering groceries, car repairs, and medical bills
- The banking industry’s warning that a 10% cap could cut off credit access for low-income and subprime borrowers
- Morgan Stanley’s estimate that reduced credit access could slash consumer spending by up to 5%
- Claims that millions of Americans could lose credit cards altogether — and whether those predictions are exaggerated
- How a rate cap could impact cash-back rewards, travel points, and annual fees
- The political reality: Can Trump actually impose a credit card APR cap without Congress?
- The bipartisan Sanders–Hawley bill that could make a 10% cap a real possibility

At its core, this debate exposes a deeper tension in the U.S. economy: protecting consumers from crushing interest rates versus preserving access to credit for those who need it most.

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