"In a since-deleted X post, the hedge fund billionaire said late on Friday that Trump's call for a 10% cap on credit card interest for one year was a "mistake" that could lead to millions having their cards canceled. "This is a mistake President," Ackman wrote. "Without being able to charge rates adequate enough to cover losses and to earn an adequate return on equity,"
"credit card lenders will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates higher than and on terms inferior to what they previously paid." Trump had taken to Truth Social earlier on Friday in a fresh effort to address the hot political issue of " affordability," saying his administration intended to target lenders charging interest rates of "20 to 30%.""
President Donald Trump called for a one-year 10% cap on credit card interest, effective January 20, 2026, targeting lenders charging 20 to 30%. Such a cap would likely require congressional authorization. Bill Ackman criticized the proposal as a mistake, warning that lenders unable to charge rates sufficient to cover losses and earn adequate returns would cancel cards for millions of consumers. Canceled cards could push affected consumers to loan sharks charging higher rates and offering inferior terms. Ackman said the goal of reducing credit card interest was worthy but reiterated concerns about a strict 10% cap.
Read at Business Insider
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