Wall Street skeptical Trump's proposed credit card rate cap will advance

Core Viewpoint - President Trump's proposal to cap credit card interest rates at 10% has garnered attention but faces significant legislative hurdles and low chances of passing [1][3]. Group 1: Proposal Details - The proposed cap would be effective for one year starting January 20, but lacks details on implementation and compliance mechanisms [2]. - The average credit card interest rate in the U.S. is currently approximately 19.65% [4]. Group 2: Industry Impact - High credit card interest rates contribute significantly to the profitability of banks and card issuers, making the proposed cap a potential threat to their revenue streams [1]. - Analysts believe that any rate cap would need to be enacted by Congress rather than through executive action, indicating a low probability of legislative success [3][5]. Group 3: Political Context - Affordability of credit has become a key political issue as voters focus on the costs of everyday necessities ahead of the U.S. mid-term elections [4]. - Lower-income households are more likely to carry credit card balances and face higher interest rates, highlighting the socio-economic implications of the proposed cap [4].