Fox Business·2026-01-16 23:47Core Viewpoint - The Trump administration is proposing a 10% cap on credit card interest rates, which has faced opposition from the financial services industry due to concerns over access to credit for millions of consumers [1][2]. Group 1: Proposal Details - President Trump announced a proposed 10% cap on credit card interest rates, set to take effect on January 20, coinciding with the anniversary of his second inauguration [1]. - The proposal may require Congressional action and has been met with significant pushback from the financial services sector [2]. Group 2: Industry Response - National Economic Council Director Kevin Hassett indicated that discussions with major banks have included a "Trump card" aimed at expanding credit access for consumers [3][6]. - Hassett mentioned that large banks are supportive of the idea, suggesting they could voluntarily offer credit to consumers who are financially stable but currently lack access [6]. Group 3: Impact Analysis - The Electronic Payments Coalition (EPC) analyzed the potential impact of the proposed interest rate cap, estimating that 82% to 88% of credit card holders could lose their cards or face significant reductions in credit limits, particularly affecting low- to moderate-income consumers [9]. - EPC's analysis projected that nearly all credit card accounts linked to credit scores below 740 would be closed or severely restricted, impacting approximately 175 million to 190 million credit card holders [10]. - JPMorgan Chase's CFO warned that the proposed cap could lead to reduced access to credit, negatively affecting both consumers and the broader economy [13][14].