Former President Donald Trump Credit card issued with annual limit Interest Rates The plan to raise the maximum to 10% was floated during a campaign stop in Long Island on Wednesday night, prompting banking groups to protest against the plan as Democrat Kamala Harris touts the Republican version of the plan. The widely criticized “price controls.”
“Until working Americans achieve this goal, we're going to put a temporary cap on credit card interest rates,” Trump said at a news conference. A rowdy crowd of about 16,000 at the Nassau Coliseum “We will limit it to around 10%. We cannot let them earn 25 and 30%,” he said, outlining his economic plan.
As of last May, the average credit card interest rate was 21.5%. according to According to data provided by the Federal Reserve, interest rates jumped in early 2022 amid a surge in inflation caused by the Covid-19 pandemic.
Credit card interest rates have never dropped below 10% in the Fed's dataset, which dates back to 1994.
But critics warned that Trump's plan would most harm the very people it claimed to help.
“Government-imposed price controls on credit card interest rates would hurt all cardholders, especially the lowest-income Americans whom these measures are intended to help,” a banking industry insider at the Consumer Banking Association told The Post on Thursday.
“This will result in credit cards being offered only to consumers who have high incomes and credit scores and who pose a lower risk to card issuers.”
Peter Schiff, chief economist at Euro Pacific Asset Management, argued that “Trump has proposed his own version of price controls.”
“It would destroy the industry and millions of Americans would lose their credit cards,” he said. “Credit cards have huge losses because of people who don't pay. So they need higher interest rates to make up for it. There's also a lot of fraud.”
Trump and his allies criticised Harris after she unveiled plans to crack down on US troops. The so-called price hike in the food industry last month,
The 45th president labeled him a “Marxist” and suggested his proposal was “communist” in practice.
In 2019, several politicians, including Senator Bernie Sanders (I-Vt.) and Representative Alexandria Ocasio-Cortez (D-NY) Supported the measure to put a limit on interest payment on credit cards At 15%.
“We have opposed similar proposals for interest rate caps in the past,” said a spokesman for the American Bankers Association, an industry group representing banks and their employees nationwide.
“This would result in depriving consumers of credit who need it most. Instead, these consumers would be forced to use less regulated, riskier options, including payday lenders and loan sharks.”
The Trump campaign did not immediately respond to The Post’s request for details on how it would set interest rate caps on credit cards.
Trump also promised ahead of the Long Island rally that he would dramatically cut the price of car insurance.
He posted on X, “Your automobile insurance has gone up 73% – vote for Trump, I'll cut that number in half!”
On Wednesday, Federal Reserve Chairman Jerome Powell said… First key rate announced The cuts have been made since the start of the COVID-19 pandemic.
As he had previously signaled, Powell decided to take the big step and lowered the Fed's benchmark interest rate target by 50 basis points — half a percentage point — to a range between 4.75% and 5%, down from a range of 5.25% to 5.50%.
The Fed's benchmark target rate is closely watched because it can have an impact on other key interest rates.
