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Trump Proposes 10 Percent Cap on Credit Card Interest Rates

lite News Desk 2 min read

At a glance

  • Donald Trump proposed a 10 percent cap on credit card interest rates
  • The cap was suggested to begin on January 20, 2026
  • No federal law or executive order has enacted the cap as of January 21, 2026

A proposal from President Donald Trump to limit credit card interest rates to 10 percent has drawn attention from policymakers and industry leaders. The measure, if implemented, would set a nationwide ceiling on interest rates for a one-year period starting January 20, 2026.

As of January 21, 2026, no federal legislation or executive order has established this cap. The proposal remains at the discussion stage, with no current legal requirement for credit card issuers to comply with the suggested limit.

Efforts to introduce similar restrictions in Congress have not advanced. Legislation introduced by Senators Josh Hawley and Bernie Sanders to impose a 10 percent cap on credit card interest rates has not progressed beyond initial stages in the legislative process.

What the numbers show

  • The proposed cap is set at 10 percent interest for credit cards
  • The intended start date for the cap is January 20, 2026
  • A Vanderbilt University study estimated $100 billion in annual savings for Americans under the cap

A study by Vanderbilt University estimated that implementing a 10 percent cap could reduce annual interest payments by approximately $100 billion for consumers. This figure reflects potential savings if the cap were to take effect as proposed.

Current federal policy does not mandate a maximum interest rate for credit cards. The proposed cap would represent a new federal standard if enacted through legislation or executive action.

At the World Economic Forum in Davos, JPMorgan Chase CEO Jamie Dimon addressed the proposal. He stated that capping credit card interest rates at 10 percent would be an "economic disaster," according to media reports from the event.

Industry reaction

JPMorgan Chase CEO Jamie Dimon said at the World Economic Forum that the proposed 10 percent cap would have negative economic consequences. His statement was made in response to questions about the policy during the event in Davos.

No other major financial institutions or trade associations have issued official statements regarding the proposal as of January 21, 2026. The legislative process for similar measures in Congress remains ongoing, with no enacted changes to date.

* This article is based on publicly available information at the time of writing.

Sources and further reading

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