Trump Blames Biden for High Rates, Announces 10% Cap

In a direct attack on his predecessor’s economic legacy, Donald Trump has announced a 10% cap on credit card interest rates, blaming the “Sleepy Joe Biden Administration” for the current high costs. The announcement, made on Truth Social, sets a start date of January 20 for the new policy. Trump argued that rates of 20-30% were allowed to “fester unimpeded” under Biden, and promised to put an end to the “ripping off” of the American public.
The political framing of the announcement is clear: Trump is positioning himself as the solver of problems created by the previous administration. With credit card debt at a record $1.17 trillion, the issue of high interest rates is a major liability for Democrats and a potent weapon for Trump. By promising immediate relief, he is hoping to consolidate support among voters struggling with inflation and debt.
But the banking industry warns that Trump’s solution is economically dangerous. Major financial associations issued a statement predicting that the cap would lead to a reduction in credit availability. They argued that if they cannot charge market rates, they will stop lending to riskier borrowers. This would leave millions of working-class families without access to credit, potentially driving them to predatory lenders.
Senator Elizabeth Warren was also critical, though she focused on the legal aspects. She called the announcement a “joke,” noting that the president cannot unilaterally rewrite financial regulations via social media. Warren argued that true reform requires legislation, and she accused Trump of offering empty promises to desperate families.
Despite the criticism, the move has been welcomed by some lawmakers. Senator Josh Hawley praised the decision as a “fantastic idea,” highlighting the bipartisan appeal of lowering interest rates. As the January 20 deadline nears, the debate over who is to blame for the debt crisis—and how to fix it—is heating up.