Trump's Credit Card Interest Rate Cap 'Unconstitutional,' Says Peter Schiff: Same Kind of 'Socialist Price Control' He Slammed Kamala Harris Over - iShares U.S. Financial Services ETF (ARCA:IYG)

Core Viewpoint - Economist Peter Schiff criticized President Trump's proposal to impose a one-year cap on credit card interest rates at 10%, warning it could lead to a credit crunch for borrowers [1][2]. Group 1: Proposal Details - Trump's proposal is described as "unconstitutional" and a form of "socialist price control," which he previously criticized in others [2]. - The cap is intended to be implemented by credit card companies by January 20, 2026, coinciding with the first anniversary of Trump's second term [2]. Group 2: Industry Concerns - Concerns have been raised that the proposed cap could disrupt consumer lending markets, forcing lenders to reduce credit limits and close accounts for higher-risk borrowers [2]. - Bill Ackman, a hedge fund manager and Trump ally, labeled the proposal a "mistake," suggesting it could lead credit card companies to cancel millions of accounts, pushing some borrowers towards "loan sharks" [4]. - Senator Elizabeth Warren criticized the proposal, stating that it reflects a lack of genuine concern for affordability and highlights the administration's efforts to undermine consumer protections [4]. Group 3: Market Reaction - The iShares U.S. Financial Services ETF (NYSE:IYG), which tracks leading U.S. credit card and financial services companies, showed minimal reaction to the announcement, closing down 0.21% at $94.32 [5].