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We recently blogged about President Trump's Truth Social post in which he announced his intent to impose a 10% per annum interest rate cap on credit cards for one year beginning on January 20, 2026, the one-year anniversary of his second term of office. On January 21, during his speech delivered at the World Economic Forum in Davos, Switzerland, he announced his support for legislation to accomplish that result.
For the reasons we gave in our prior blog about this subject, we remain very skeptical about Congress enacting such legislation.
He said nothing about his earlier support expressed on Truth Social of the Credit Card Competition Act, a bill intended to reduce credit card interchange fees by enabling merchants to select one of two rails for processing credit card payments.
We are including below the transcript from this portion of Trump's speech:
"One of the biggest barriers to saving for a down payment has been surging credit card debt. The profit margin for credit card companies now exceeds 50%. One of the biggest. And they charge Americans interest rates of 28%, 30%, 31%, 32%. Whatever have happened to usury?"
"So to help our citizens recover from the Biden disaster, all caused by this horrible, just horrible precedent, I'm asking Congress to cap credit card interest rates at 10% for one year. And this will help millions of Americans save for a home. They have no idea they're paying 28%. They go out there a little late in their payment, and they end up losing their house. It's terrible."
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