As Trump's deadline for a cap on credit card rates looms, banks have only questions and no answers

Core Viewpoint - President Trump has demanded that credit card companies cap interest rates at 10% by January 20, but there is uncertainty regarding the administration's plans and the seriousness of this demand [1][2]. Group 1: Impact on Consumers - If credit card rates are capped at 10%, Americans could save approximately $100 billion in interest annually [3]. - The cap would significantly impact the credit card industry, although it would remain profitable; however, credit card rewards and perks may be reduced [3]. Group 2: Industry Response - Bank lobbyists are uncertain about the White House's intentions and have been trying to understand the implications of the proposed cap [4]. - There have been bipartisan legislative efforts to cap interest rates, but Republican leadership in Congress has shown little support for such measures [4]. Group 3: Regulatory Context - The Dodd-Frank Act prohibits federal bank regulators from setting usury limits on loans, complicating the implementation of Trump's demand without new legislation [5]. - The administration may rely on political pressure rather than formal regulations to influence the credit card industry, similar to previous actions taken with pharmaceutical and tech companies [6]. Group 4: Wall Street Perspective - Wall Street is generally resistant to conflict with the White House, as banks have benefited from the administration's deregulatory policies and tax cuts, which have led to increased investment banking revenues [7].