The White House is shifting tactics in its clash with banks over credit card rates. After President Trump’s call for a 10% interest rate cap was strongly rejected by the industry, top economic advisor Kevin Hassett suggested a narrower, voluntary approach.
Key Highlights:
Pivot from Mandate to Voluntary Offerings: Instead of pushing for a broad, legally enforced rate cap, Hassett proposed that banks could voluntarily offer special "Trump cards" to creditworthy but underserved Americans.
Industry Resistance Remains Firm: Bank executives and lobbyists have flatly rejected the 10% cap idea, warning they would likely close accounts rather than comply. So far, major lenders say they have had no discussions with the administration about the new "Trump card" concept.
Targeting a “Sweet Spot”: The new focus is on consumers who have sufficient income but lack access to credit—a group Hassett described as worthy of new products.
Legislation Likely Sidestepped: The voluntary approach appears designed to avoid a difficult legislative battle, signaling the administration may be scaling back its ambition for sweeping industry changes.
