Donald Trump is using the announcement of a 10% credit card rate cap to tout the success of his “historic” administration. In a Truth Social post, the former president linked the new policy to the one-year anniversary of his term, calling it a celebration of his achievements. He framed the cap as a reward for the American people, whom he claims have been “ripped off” by high interest rates.
The rhetoric serves to reinforce Trump’s narrative of a successful presidency. By delivering a tangible benefit like lower interest rates, he is trying to cement his support among working-class voters. The move addresses the $1.17 trillion debt crisis, a major issue for his base.
However, the banking industry views the “historic” move as a historic mistake. Major financial associations issued a statement warning that the cap would lead to a credit crunch. They argued that the policy ignores basic economics and would hurt the economy. The banks positioned themselves as the guardians of financial stability against populist overreach.
Senator Elizabeth Warren was also critical, calling the announcement a “joke.” She argued that Trump is using the issue to distract from his failures and that he lacks the legal authority to enforce the cap. Warren challenged the president to back up his words with real action.
Despite the criticism, the move has been praised by Senator Josh Hawley. As January 20 approaches, Trump’s attempt to define his administration through this policy is a high-stakes political gamble.