White House floats ‘Trump cards’ after banks reject rate cap demand

A Voluntary Plan Emerges After Standoff

President Trump wanted credit card companies to slash their interest rates to 10 percent by January 20.

The banks said no.

Now the White House is floating a different idea: special credit cards with capped rates that banks would offer voluntarily to certain Americans.

Economic advisor Kevin Hassett calls them “Trump cards,” and he says they could arrive without Congress having to pass a single law.

Whether any bank actually signs up remains to be seen—industry sources say no major issuer has had discussions with the administration about the concept.

Trump Posts His Demand on Social Media

On January 9, 2026, Trump took to Truth Social with a blunt message for credit card companies.

He called for a one-year cap on interest rates at 10 percent, effective January 20, the first anniversary of his second inauguration. He accused card issuers of ripping off the American public with rates as high as 30 percent.

The post offered no details on how the cap would be enforced or whether it would apply to existing balances or just new ones.

Bank Stocks Drop Within Hours

Wall Street did not take the news well.

Capital One shares fell around 6 percent in trading the following Monday. Synchrony Financial dropped more than 8 percent. Even diversified banks like JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo lost between 2 and 4 percent. Visa, Mastercard, and American Express also declined.

Investors saw the proposal as a direct threat to one of the most profitable corners of the banking business.

Big Banks Refuse to Comply

The four largest U.S. banks pushed back hard.

JPMorgan CFO Jeremy Barnum said a 10 percent cap would force the bank to significantly change and cut back its credit card business.

Bank of America CEO Brian Moynihan argued that lower caps would restrict credit and reduce the number of people who could get credit cards.

Citigroup’s outgoing CFO Mark Mason said the move would likely cause a significant slowdown in the economy. None of them agreed to voluntarily lower rates. (Note: Mason is transitioning out of the CFO role and will leave Citi by the end of 2026.)

JPMorgan Hints at Legal Fight

Barnum went further than just objecting. He told reporters that if the administration tried to enforce weakly supported directives, the industry would consider all options, including going to court.

JPMorgan is the nation’s largest credit card issuer. The bank also recently reached a deal to acquire the Apple Card portfolio from Goldman Sachs, bringing over $20 billion in card balances to its platform.

It has a lot to lose and appears ready to fight.

White House Shifts to Voluntary Approach

Facing unified opposition from the banking industry, the administration changed its tune.

Kevin Hassett, director of the National Economic Council, said on Fox Business that banks could voluntarily provide low-rate cards to people who currently lack credit access but have stable incomes. He called it a way to address affordability without needing legislation.

The plan targets a narrow group of consumers rather than the entire credit card market.

Hassett Introduces Trump Cards

Hassett gave the voluntary cards a name: Trump cards. He said the administration expects banks to offer these new products on their own, without being forced.

The cards would go to people in a “sweet spot” who are worthy of credit but have been shut out of the system.

Hassett did not say which banks had agreed to participate or when the cards might actually appear.

So far, no major issuer has publicly committed, and at least one major card issuer and a bank lobbyist told CNBC they haven’t had any discussions with the administration about the concept.

Americans Owe a Record $1.23 Trillion

The push for lower rates comes at a moment when credit card debt has never been higher.

Americans owed $1.233 trillion on their cards as of the third quarter of 2025, according to the Federal Reserve Bank of New York.

That is up 60 percent from early 2021. The average interest rate on accounts carrying a balance is around 22 percent.

For many households, monthly payments barely cover the interest charges.

Trump First Promised This in 2024

This is not a new idea for Trump. He first floated a 10 percent rate cap during a campaign rally in September 2024.

At the time, he said working families needed temporary relief from exploitative interest rates. But after taking office in January 2025, he did nothing to follow through.

Hours before his January 2026 Truth Social post, Senator Bernie Sanders publicly criticized Trump for breaking his promise.

The post came later that same day.

Sanders and Hawley Have a Bill Ready

A bipartisan bill to cap credit card rates at 10 percent has been sitting in the Senate since February 2025.

Senators Bernie Sanders and Josh Hawley introduced the legislation together, calling current rates extortion and loan sharking.

The bill would cap rates for five years and give consumers a private right to sue issuers who violate the limit.

The bill has gained additional cosponsors but has not advanced out of committee.

House Republicans Reject Price Controls

Even with Trump pushing for lower rates, his own party is not on board.

House Speaker Mike Johnson has said he would not support government-mandated caps on credit card interest, warning of “negative secondary effects.” Other Republicans in Congress have echoed that position.

The banking industry has long argued that price controls lead to reduced credit access, and many GOP lawmakers agree.

Without Republican support, any legislation would be dead on arrival.

January 20 Deadline Passes Without Compliance

With the January 20 deadline having come and gone, banks say they still have no idea what the White House actually wants them to do.

Trump told reporters on Air Force One that banks not complying would be “in violation of the law,” but no such law exists.

Industry insiders believe the administration lacks the legal authority to enforce a cap without Congress, and they are prepared to wait it out.

Meanwhile, Bank of America is reportedly considering whether to offer a card with a 10 percent rate cap voluntarily—a potential olive branch that could shift the dynamic.

This article was created with AI assistance and human editing.

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