President Donald Trump is weighing an executive action to cap credit card interest rates as Congress remains stuck.
The 10% credit card plan sits inside a broader affordability agenda. That agenda includes blocking institutional investors from buying single‑family homes and allowing savers to tap 401(k) plans for home down payments.
Timing remains uncertain, but Trump said more details will come when he speaks at the World Economic Forum in Davos next week.
National Economic Council Director Kevin Hassett said on Fox Business that talks with major banks are active. “They think that the president’s on to something,” Kevin said during the interview. At the same time, housing policy is also under review.
Officials are discussing whether to block stock buybacks by publicly traded homebuilders. Bill Pulte, head of the Federal Housing Finance Agency, raised the idea earlier this week in an interview with the Wall Street Journal.
No decisions have been finalized. White House officials say discussions are still moving. The administration did not respond to requests for comment as talks continued behind closed doors.
Late last week, Trump called for a one‑year 10% cap on credit card rates and set January 20 as the deadline. His team has also met with homebuilders to discuss affordability. Financial firms spent days trying to figure out how the order would work.
Industry trade groups began planning responses and warned the cap could hit lower‑income borrowers and disrupt lending.
Pressure increased when Press Secretary Karoline Leavitt spoke on Thursday. She said companies are expected to lower rates by the deadline. She called it a “demand” from Trump.
Banks push back as consumers and lobbyists weigh outcomes
The issue dominated earnings calls at major banks this week. JPMorgan Chase, Citigroup, and Bank of America all raised concerns. Executives said they lack enough detail to measure the impact on their businesses.
Citigroup Chief Financial Officer Mark Mason said a government‑mandated cap could slow economic activity. Bank of America Chief Executive Officer Brian Moynihan said it could limit access to credit if banks pull back.
Bank trade groups also pushed back. “We’re talking about unsecured lending, so it’s not like an auto loan or a mortgage loan where there’s something you can take back,” said Rob Nichols, head of the American Bankers Association.
Lobbyists spent the week trying to understand how Trump might implement the order. One option under discussion is using the interstate commerce clause to override state usury limits, according to a lobbyist involved in the talks.
Some consumer advocates warned that a 10% cap could be too low and lead banks to cut lending. Others pointed to federal credit unions, which already operate under rate caps. “It’s about finding a reasonable rate that doesn’t undermine the ability of consumers who are struggling to get by,” said Adam Rust of the Consumer Federation of America.
Kevin also floated the idea that banks could voluntarily launch new Trump cards. Bilt rolled out three cards earlier this week with rates capped at 10%, though the limit lasts one year and applies only to new purchases.
