Trump Considers 10% Credit Card Rate Cap as Part of Broader Affordability Agenda

Former President Donald TRUMP is weighing an executive action to cap credit card interest rates at 10%, a move embedded within a wider affordability initiative. The proposal also includes measures to restrict institutional investors from purchasing single-family homes and permits savers to use 401(k) funds for home down payments. Details are expected during Trump's upcoming speech at the World Economic Forum in Davos.

National Economic Council Director Kevin Hassett indicated active discussions with major banks, suggesting industry recognition of the plan's potential. Simultaneously, housing policy reforms are under review, including possible restrictions on stock buybacks by publicly traded homebuilders—an idea floated by Federal Housing Finance Agency head Bill Pulte.

The administration faces mounting pressure as financial firms scramble to assess operational implications of the proposed rate cap. Industry groups warn such measures could disproportionately affect lower-income borrowers and disrupt credit markets. With no final decisions made, closed-door negotiations continue ahead of Trump's January 20 deadline for implementation.