Trump Wants One-Year Cap On Credit Card Interest Rates

President Donald Trump announced Friday that he plans to pursue a temporary federal cap on credit card interest rates, aiming to ease costs for consumers.

In a post on Truth Social, Trump said his administration would seek to limit credit card interest rates to 10% for a one-year period beginning Jan. 20, 2026. He said the proposal is intended to curb what he described as excessive and abusive practices by credit card companies, which he said have charged interest rates ranging from 20% to 30% or higher.

Trump wrote that Americans should no longer be “ripped off” by credit card companies and argued that high interest rates went unchecked in recent years. He said the planned effective date would coincide with the one-year anniversary of what he described as his “historic and very successful” return to office. According to Trump, the proposal is part of a broader effort to address corporate practices he believes disproportionately affect working Americans.

As of early January 2026, the average interest rate on U.S. credit cards carrying balances is approximately 19.65%. Rates reached a record high of 20.79% in August 2024 and have declined only slightly since then, remaining elevated compared with historical norms.

Other industry measures show average annual percentage rates ranging from 22% to 23%, depending on how they are calculated. Some data indicate interest rates on existing balances exceeding 22.8%, while new credit card offers average around 22.35%.

Despite persistently high credit card rates, the Federal Reserve cut its benchmark interest rate twice last year, most recently in October, when it lowered the rate by a quarter point to a target range of 3.75% to 4.00%. The move followed a similar reduction in September and was approved by the Federal Open Market Committee after a two-day meeting.

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