Jim Cramer Says 'Wall Street Doesn't Seem To Care' About Trump's 10% Cap On Credit Card Rates, Warns 'Millions' Will Lose Access To Credit

President Donald Trump’s proposal to impose a one-year 10% cap on credit card interest rates is being met with indifference on Wall Street, according to TV host Jim Cramer.

Wall Street ‘Doesn’t Seem To Care’

Cramer said Trump has “decided that credit card companies will have to cap rates at 10% for a year,” while noting that the move requires Congressional approval, on CNBC’s “Mad Money” on Monday.

“Congress would need to pass actual legislation to make that happen,” Cramer said, while suggesting that Trump could still attempt to move forward by trying to “browbeat” the heads of the banks into complying with his directive to begin capping credit card interest rates at 10% by Jan. 20, 2026.

Cramer noted that the market has largely shrugged off Trump’s announcement, with bank stocks rebounding during the day after opening lower. “Wall Street just doesn't seem to care,” he said, adding that it was “because it's too over the top.”

However, he cautioned that the consequences of such a cap would be felt by ordinary Americans, particularly those with lower credit scores. “If we actually cap credit card interest rates at 10%, the real victims would probably be the millions of Americans who [would] no longer be able to borrow money,” he said.

He explained that high rates were essential for lenders to justify the risk of issuing credit to subprime borrowers, adding, “these companies simply won't lend to any of them unless they can get superpotent interest rates.”

Cramer also warned about broader economic impacts if the credit flow gets disrupted. “You'd just be mandating a crash if these companies stop lending.”

Bank Stocks In The Red

While leading bank stocks did recover later in the day, the sector closed in the red on Monday, with some companies such as Capital One Financial Corp. (NYSE:COF), which derives the bulk of its revenue from its credit card business, witnessing steep declines.

Banking industry organizations such as the Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a joint statement outlining their concerns that the move could limit credit availability for consumers.

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