President Donald Trump announced Friday night that credit card interest rates will be ordered to pause at 10 percent for one year beginning January 20, framing the move as a direct strike against what he described as predatory practices by major credit card companies and a broader push to restore affordability for American families.
In a post on Truth Social, Trump said the federal government would no longer allow consumers to be “ripped off” by credit card companies charging interest rates he said routinely climb into the 20 to 30 percent range. He blamed those rates on policies he said were allowed to “fester unimpeded” during the Biden administration.
“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more,” Trump wrote. He closed the message with a one-word emphasis: “AFFORDABILITY!”
Trump followed up with a second post outlining the scope and timing of the move. “Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” he said, noting that the date coincides with the one-year anniversary of what he described as a “historic and very successful Trump Administration.”
Current data highlights why credit card debt has become a growing concern for many Americans. Credit cards typically carry an average interest rate of 23.79 percent, according to LendingTree. As of the third quarter of 2025, Americans were carrying $1.23 trillion in credit card debt, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data. More than 80 percent of Americans have at least one credit card, according to The Motley Fool.
It remains unclear whether Trump’s announcement will face legal challenges or what form implementation would take, but the move is part of a series of aggressive financial actions the president has unveiled in recent days, all centered on easing economic pressure on households.
Earlier this week, Trump announced plans to block “institutional” buyers from purchasing single-family homes, arguing that corporate ownership has pushed ordinary Americans out of the housing market. “People live in homes, not corporations,” he wrote on Truth Social.
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” Trump said. He blamed rising housing costs on record-high inflation driven by Democrats, arguing that younger Americans in particular are being locked out of homeownership.
On Thursday, Trump announced another major intervention, directing the purchase of $200 billion in mortgage bonds. He said the move is intended to drive down mortgage rates and monthly payments, making homeownership more attainable.
“This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” Trump said.
The president has increasingly centered his economic messaging on the theme of affordability, repeatedly invoking the term in recent weeks as it becomes a dominant issue ahead of the November midterm elections. With voters across the political spectrum focused on the cost of living, Trump’s announcement signals a clear effort to contrast his approach with Democratic policies and position affordability as a defining issue of the current political moment.
