Banks Clash with Trump Over Proposed 10% Credit Card Interest Rate Cap

• US President Donald Trump proposed a one-year, 10% cap on credit card interest rates via social media, rattling banks and lenders.
• Bank executives, including JPMorgan Chase and Citigroup, warned they would close customer accounts rather than comply, arguing it would restrict credit access and harm the economy.
• Credit card interest rates are a major profit driver for banks and a key component of US consumer finance, with average APRs reaching 25.2% for general-purpose cards in 2024.
• Trump's proposal is seen as an attempt to address voter frustration over high living costs ahead of midterm elections, accusing the industry of exploiting borrowers.
• There is no clear path for the administration to unilaterally impose such a cap, and Congress has shown little interest in the idea, suggesting it may be a 'trial balloon'.

Why It Matters: Banks are strongly opposing Trump's proposed 10% credit card interest rate cap, warning of severe economic consequences.