Global: Trump calls on congress to cap credit card rates

Earlier this month, Trump took to social media to float the cap as he faces cost-of-living concerns ahead of this year’s mid-term congressional elections.

The move immediately drew fire from the banking sector, which has argued that a cap would have huge implications for consumers and their ability to access credit.

Trump’s initial call did not provide specifics but speaking at the World Economic Forum in Davos on Wednesday he elaborated: “I’m asking Congress to cap credit card interest rates at 10% for one year and this will help millions of Americans save for a home.”

However, Brian Jacobsen, chief economic strategist, Annex Wealth Management, told Bloomberg that Trump’s decision to go to Congress, rather than try to push through a cap via an executive order “felt like a dialling down of the substance even if the style was pure Trump”.

Hours before Trump’s speech, JPMorgan’s Dimon used his Davos address to ramp up opposition to any cap, saying: “It would remove credit from 80% of Americans, and that is their back-up credit.”

Dimon continued: “People crying the most will not be the credit card companies. It will be the restaurants, retailers, travel companies, the schools, the municipalities, because people will miss their water payments, this payment and that payment.”