"He cited affordability concerns and criticized rates of 20% to 30% under the prior administration. This move represents yet another unprecedented government intrusion into the marketplace by his administration, potentially disrupting how banks price credit and manage risk. While aimed at easing consumer burdens, it raises questions about enforcement, as Trump provided no details on implementation - whether through executive action or congressional legislation. Banking groups quickly opposed it, warning of reduced credit availability."
"The Trump administration has pursued several policies that interfere with free market operations. These include imposing sweeping tariffs on imports, which have raised costs for businesses; taking stakes in several companies for national security or strategic industries; announcing steps to ban institutional investors from buying more single-family homes to address housing affordability; and now proposing a 10% cap on credit card interest rates, overriding market-driven pricing."
President Trump announced a one-year cap on credit card interest rates at 10%, effective Jan. 20, citing affordability concerns and criticizing previous rates of 20% to 30%. The cap could disrupt how banks price credit and manage risk and may reduce credit availability, as banking groups quickly opposed the proposal. No implementation details were provided, leaving enforcement uncertainty about whether the cap would be enacted via executive action or congressional legislation. The proposal follows prior market-intervening policies including tariffs, equity stakes, and limits on institutional home buying, which have increased volatility and prompted market reactions.
Read at 24/7 Wall St.
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