Core Viewpoint - Credit card interest rates in the U.S. are at a 30-year high, averaging just under 21%, prompting President Trump to propose a 10% cap on these rates [1][2] Group 1: Legislative Proposals - President Trump has called for a one-year limit on credit card interest rates starting January 20 [2] - Senator Bernie Sanders has also been advocating for similar measures, indicating that this issue transcends partisan lines [2] Group 2: Opposition to the Proposal - Billionaire hedge fund manager Bill Ackman has criticized the proposed cap, labeling it a "mistake" that could lead to widespread cancellation of credit cards [3] - Ackman's argument highlights the complexities of financial markets, particularly regarding risk and the determinants of interest rates [3] Group 3: Economic Factors Behind High Rates - Credit card interest rates are influenced by default risk, as credit cards lack collateral, making them riskier for lenders [4] - The cost of borrowing for lenders is historically high, which subsequently affects consumers through elevated interest rates [5]