In a significant move aimed at providing relief to American consumers, US President Donald Trump has announced a major policy intervention targeting high credit card costs. The President revealed plans to impose a strict limit on the interest rates that credit card companies can charge.
Details of the New Interest Rate Cap
President Trump, in a post on his Truth Social platform on Friday (local time), declared that credit card interest rates will be capped at 10% for a period of one year. This directive is a direct response to what he described as exorbitant rates ranging from 20% to 30% or even higher that have burdened the public.
The policy is scheduled to take effect from January 20, 2026. Notably, this date marks the one-year anniversary of Trump's current term in the White House. The President framed the announcement as a corrective measure, sharply criticising the previous administration for its inaction.
"Please be informed that we will no longer let the American Public be 'ripped off' by Credit Card Companies," Trump stated in his post. He attributed the persistence of high rates to the "Sleepy Joe Biden Administration," claiming they "festered unimpeded" during that time.
Broader Context of Economic Relief Measures
This announcement is not an isolated action but part of a series of steps by the Trump administration designed to alleviate financial pressure on American households. The focus on affordability comes amid ongoing economic challenges for many consumers.
Earlier, the US government unveiled another substantial measure, announcing the purchase of mortgage bonds worth nearly $200 billion. Officials stated that this move is intended to help lower mortgage rates, addressing persistent concerns over housing affordability that have weighed heavily on citizens.
Implications and Political Undertones
The 10% cap represents a dramatic reduction from current market rates and is poised to directly impact the revenue models of major financial institutions. While the move is being touted as a major win for consumer rights and wallet relief, it is also layered with clear political messaging.
By setting the effective date on the anniversary of his administration and explicitly blaming his predecessor, President Trump has intertwined the policy with his political narrative. The one-year duration of the cap suggests it may be positioned as both an immediate relief tool and a potential talking point for the future, depending on its economic impact and public reception.
The combined strategy of intervening in both the credit card and housing markets signals a focused attempt to tackle the cost-of-living concerns that are central to many American voters. The success of these measures will likely be closely watched as indicators of the administration's economic policy effectiveness.
