Why a proposed 10% cap on credit card interest is rattling big banks

Good morning. President Donald Trump’s proposal to temporarily cap credit card interest rates has both supporters and critics. In a social media post on Jan. 9, Trump called for a one-year cap on credit card interest rates at 10% starting Jan. 20, reviving a pledge from his 2024 campaign as the administration seeks to demonstrate progress on affordability.

Supporters argue a temporary cap could ease pressure on households facing average APRs above 20%.

But economists and bank executives...