Trump administration floats new ‘Trump card’ credit card proposal

The Trump administration is rolling out a new proposal aimed at expanding access to Credit cards After the president’s calls for a 10% cap on credit card interest rates were met with rejection from the financial services industry.

president Donald Trump He called for a 10% cap on credit card interest rates in a post on his Truth Social platform last week, and said it would take effect on January 20 — the one-year anniversary of his second inauguration as president.

However, the proposal would likely require action by congress, and has been met with opposition from the financial services industry, which has warned that millions of credit card users would lose access to credit if the 10% cap is implemented.

National Economic Council Director Kevin Hassett appeared on FOX Business Network’sMorning with MariaShe told Maria Bartiromo that the administration’s discussions with large financial institutions included discussing a “Trump Card” that would seek to expand access to credit for consumers.

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“We’ve had conversations with the big banks, with the CEOs of many of the big banks, who believe the president is on to something — that he has a great idea,” Hassett said.

Big banks “can voluntarily provide to people who are in that kind of sweet spot who don’t have a lot of financial leverage because they don’t have access to credit, but they have enough income and stability in their lives that they deserve credit,” he said.

“We anticipate that it won’t necessarily require legislation, because there will be really great new Trump cards offered to people that banks are offering voluntarily,” Hassett added.

FOX Business has reached out to several Financial institutions To comment on Hassett’s discussion of the new “trump ticket” proposal.

Trump calls for a one-year, 10% cap on credit card interest rates

Credit card interest rates can rise to over 20% for some borrowers, as the credit card debt is actually an unsecured loan. (iStock/iStock)

Critics of the president’s proposed 10% interest rate cap warned after last week’s announcement that if the cap were implemented, many Americans would lose their credit cards or undergo major changes.

The Electronic Payments Coalition (EPC) analyzed the impact of capping credit card rates at 10% and found that between 82% and 88% of credit card holders would see their cards canceled, or Credit limit It decreased significantly, and low- to middle-income consumers were the most affected.

The EPC analysis estimated that nearly every credit card account associated with a credit score below 740 would be closed or severely restricted if a 10% interest rate cap was implemented. The group found that this would affect an estimated 175 million to 190 million credit card holders.

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President Donald Trump called for a 10% interest rate cap on credit cards last week. (Anna Moneymaker/Getty Images)

A 10% credit card rate cap will be… Harm the broader economy By reducing access to credit.

“What will actually happen is that service delivery will change dramatically. Specifically, people will lose access to credit, on a very, very broad, widespread basis, especially people who need it,” Barnum said.

He added that this could create “severe negative consequences for consumers and, frankly, perhaps also negative consequences for the economy as a whole.”

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“I think it should be clear that this would be bad for us, too,” Barnum said. “I won’t go into quantification, but in a narrow sense, this is a big business for us. It’s a very competitive business, but we wouldn’t be in it if it wasn’t a good business for us.”

FOX Business’ Daniella Genovese contributed to this report.