The White House economic adviser announced on Friday (January 17) a plan to launch the “Trump Card” to alleviate economic pressures on American households and bypass legislative processes to achieve the President’s goal of setting a 10% interest rate cap.
According to a report by Fox News on Friday, Kevin Hassett, the Director of the National Economic Council, revealed during an appearance on the Fox Business channel that the Trump administration is in discussions with major banks to voluntarily introduce new credit cards, called “Trump Cards,” with a maximum interest rate of 10%. These cards aim to provide services to Americans with stable income but lacking access to credit.
Hassett pointed out that this approach may eliminate the need for government legislation to set a cap on credit card interest rates. He stated, “Our hope is that legislation may not be necessary because banks will voluntarily offer truly excellent new ‘Trump Cards.'”
A week ago, President Trump urged major American banks to set a 10% cap on credit card interest rates. However, this proposal faced widespread opposition from banking executives and lobbying groups.
In a joint statement released on January 9, banking industry groups expressed support for the goal of “helping Americans access more affordable credit” but cautioned that setting a 10% interest rate cap could reduce credit availability, ultimately impacting millions of households and small business owners reliant on credit cards.
Facing resistance from the banking industry, Hassett presented an alternative solution with a narrower scope. He mentioned that the new credit cards would target individuals in the “best position,” with sufficient income stability and creditworthiness but currently unable to secure loans.
Hassett explained, “They might not have access to financial leverage due to a lack of credit channels, but they have enough income and stable lives to qualify for loans.”
He also revealed ongoing dialogues with several top bank CEOs, who find the President’s idea sensible.
This shift indicates a potential lowering of expectations for broad reforms in the credit card industry by the White House.
Earlier this week, bankers discussing fourth-quarter performance indicated that rather than complying with Trump’s demand to offer credit cards at a maximum 10% interest rate by January 20, banks are more likely to consider closing many customers’ accounts.
Setting a cap on credit card interest rates is one of Trump’s recent economic proposals. Other measures include prohibiting large institutional investors from purchasing single-family homes and instructing Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage-backed securities to reduce mortgage rates.
According to data published on the Bankrate website, after reaching a record high in August 2024, the average credit card interest rate in the United States has been gradually declining over the past few months, standing at 19.64% as of this week.