Trump's 'Performative' Tweets Don't Change Law, Says Economist Paul Krugman, Calling Credit Card Rate Cap As 'Charade' - SPDR S&P 500 (ARCA:SPY)

Group 1 - The core argument presented by Paul Krugman is that President Trump's announcement of a 10% cap on credit card interest rates is a "charade" lacking legal authority and driven by political motives [1][2] - Krugman emphasizes that Trump's approach is performative, lacking the legislative backing necessary to effect real change in financial regulations, contrasting it with Nixon's historical price controls which were enacted through proper legislation [2][3] - The economist critiques Trump's inconsistency in ideology, labeling him as "utterly transactional" and willing to abandon free-market principles for immediate political gain [4][6] Group 2 - Krugman points out the contradiction in Trump's concern for borrowers, highlighting the administration's previous efforts to undermine the Consumer Financial Protection Bureau (CFPB), which is tasked with protecting consumers from predatory lending [5][6] - He argues that Trump's motives are cynical, noting the irony of proposing a rate cap while simultaneously attempting to weaken the agency designed to combat such issues [6] - While acknowledging the unfairness of credit card rates, Krugman insists that the solution lies in enforcing existing laws rather than impulsive executive actions, urging Democrats to restore the CFPB's funding and independence as a prerequisite for cooperation [7]