Trump's 10% Credit Card Cap Sparks Backlash- Bernie Sanders Says It's 'Unacceptable'

President Donald Trump called for a one-year cap setting credit card interest rates at 10%, saying the American public is being "ripped off." The move has sparked criticism from both sides of the political spectrum, with Sen. Bernie Sanders (I-Vt.) calling it “unacceptable”.

Trump announced the cap effective Jan. 20 on Friday in a post on his Truth Social account.

Trump’s plan, however, lacks specifics on how it will be implemented and enforced.

The issue of high credit card interest rates has been a long-standing concern, especially with the majority of Americans not having sufficient emergency savings. The lack of financial security, combined with high-interest rates, has put many households under significant strain.

This has also become a political liability for Trump and Republicans. The president has blamed his predecessor, former President Joe Biden, for high credit card rates.

Sanders Calls Cap ‘Unacceptable’

Sanders, a former presidential candidate, criticized the move, saying it runs counter to Trump's earlier pledge to rein in Wall Street and impose a 10% cap on interest rates.

Earlier, following Donald Trump's reelection in late 2024, Sanders endorsed Trump's proposal to cap credit card interest rates at 10% and said he plans to introduce legislation supporting the measure.

Sanders also pointed to the significant profits large banks have earned under the new rules, citing JPMorgan (NYSE:JPM) CEO Jamie Dimon's $770 million increase in wealth in 2025.

He wrote on X, “Last year, JPMorgan CEO Jamie Dimon made $770 million. Unacceptable.”

Sen. Elizabeth Warren, a member of the Senate Banking Committee, said Trump's credit card rate cap promises are empty, criticized his CFPB actions, and called him a fraud, ignoring affordability.

Ackman Warns Of Consumer Risks

Billionaire hedge fund manager Bill Ackman also criticized President Trump's decision, calling it a mistake and signaling disagreement with the administration's approach.

He warned that if credit card lenders cannot charge rates high enough to cover losses and earn a reasonable return, they will cancel millions of consumer cards, forcing those consumers to turn to loan sharks who charge higher rates and worse terms than before.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.