The news: At a recent rally, former President Donald Trump proposed a temporary 10% cap on credit card interest rates, per the Wall Street Journal.
- While credit unions already have an 18% cap on credit card interest rates, most US credit cards are issued by banks, which don’t have a cap.
- The average credit card interest rate was 21.5% as of May 2024, per the Federal Reserve.
The bigger picture: This is not the first attempt from a politician to cap credit card interest rates. It has been proposed by both sides of the aisle, but the consequences of the proposals have stopped them from gaining traction.