The US Treasury Secretary Scott Bessent stated on Tuesday (January 20th) that the discussion of credit card companies’ practices is not unreasonable, with several issues worth considering. This statement comes after President Trump proposed a 10% cap on credit card interest rates.
According to CNBC, Bessent, speaking at the World Economic Forum in Davos, Switzerland, stated during an interview with CNBC, “I think there are many aspects of credit card practices and behaviors that we can examine, and we will see how things develop.”
On January 9th, Trump took to the social media platform Truth Social to urge setting a temporary cap of 10% on credit card interest rates starting from January 20, 2026 (the one-year anniversary of his inauguration), to be in effect for a year.
He criticized credit card companies for currently charging rates of 20% to 30% or even higher as “exploitative” to the American public, particularly escalating without restraint during the Biden administration. He hopes that through this new measure, people will no longer be exploited by high-interest rates.
Democratic Senator Elizabeth Warren, a long-time advocate for consumer financial protection, later revealed that the Republican President had contacted her to discuss this idea.
Bessent acknowledged that the current administration indeed shares some common ground with Warren on certain issues, especially in protecting low-income groups from excessive financial burdens. However, Bessent expressed concern about Warren’s proposed regulatory approach, as it could worsen the plight faced by small and community banks.
Bessent said, “I think, in broad strokes, the President and this administration agree on many of Senator Warren’s policies, that the poorest members of society should not bear the highest burden. The issue is, she wants control over lending, she wants to implement more regulation, and these regulations could lead to the failure of small and community banks.”
While acknowledging that more regulation could have the opposite effect, Bessent also emphasized that discussing the practices of these credit card companies is not unreasonable.
Bessent’s remarks reflect the Treasury Department’s open-minded approach to reforming the credit card industry, willing to consider related proposals while warning of the negative impacts excessive regulation may bring.
The statement by the US Treasury Secretary also highlights potential cooperation between the two parties on consumer financial protection issues, despite existing differences in specific paths.
According to data published by Bankrate (based on a survey of the 50 largest credit card issuers, assuming a user’s FICO score is 700 or at the midpoint range), the average credit card interest rates in the US have been gradually decreasing after hitting a record high in August 2024. As of January 14, 2026, the average rate stood at 19.64%.