Trump Targets Credit Cards: Proposes 10% Rate Cap

Shares in major U.S. credit card companies fell sharply after former President Donald Trump called for a legal limit on the interest rates they can charge. In a public statement, Trump proposed capping credit card rates at 10%. He described current rates, which often exceed 20%, as "too high" and a "disaster" for consumers. The announcement immediately unsettled financial markets. Investors fear such a cap would severely cut profits for card-issuing banks and payment networks. Stock prices for several major firms in the sector dropped following the comments. The proposal highlights a key economic policy debate. Supporters argue it would relieve financial pressure on households. Critics, including many financial analysts, warn it could restrict access to credit. They say lenders might stop offering cards to people with lower credit scores if they cannot charge higher rates to offset the risk. As a candidate, Trump's statements can influence market sentiment. However, any permanent rate cap would require new laws passed by the U.S. Congress.