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Posted on 01/14/2026 8:24:15 AM PST by Twotone
House Speaker Mike Johnson poured cold water on President Donald Trump’s proposal to cap credit card interest rates, telling reporters Tuesday that Trump “probably had not thought through” the negative consequences for consumers.
Trump, as part of his affordability push, floated a temporary 10% cap on credit card rates Friday, adding that he wants a freeze to begin for one year starting on Jan. 20. The proposal would likely require Congress to act, but Johnson signaled his chamber would not be taking up legislation anytime soon.
“You’ve got to be very careful if you go forward in that, in the inner zeal to bring down costs, you don’t want to have negative secondary effects of that,” Johnson told reporters, in response to a question asked by the Daily Caller News Foundation. He added that Trump is an ‘ideas guy’ who is focused on bringing down the cost of living, but acknowledged that some of his proposals could have “unintended consequences.”
“What some of the experts have said, well but the problem is if you do that, then the credit card companies … would stop lending money and maybe they cap what people are able to borrow at a very low amount,” Johnson added.
Johnson’s comments are a notable departure for the speaker, who is typically in lockstep with Trump’s policy agenda.
Conservatives and the banking industry, however, have long opposed capping credit card interest rates, which they argue would limit low-income Americans’ access to credit and force them to turn to riskier options, such as payday lenders.
“Evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help,” the American Bankers Association (ABA) and other industry groups said in a statement Friday. “If enacted, this cap would only drive consumers toward less regulated, more costly alternatives.”
The White House did not immediately respond to a request for comment from the DCNF.
Left-wing Independent Vermont Sen. Bernie Sanders and Democratic Massachusetts Sen. Elizabeth Warren — in addition to populist Republican Sen. Josh Hawley — have conversely championed capping credit card rates.
“President Trump is right: working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon,” Hawley said in a statement Monday. “It’s not just wrong, it’s exploitative. And it needs to end.”
Trump argued that Americans are being “ripped off” by credit card companies who are charging interest rates of “20 to 30%, and even more” in a Truth Social post announcing the proposal Friday. He noted the freeze would coincide with the one-year anniversary of the start of his second term.
He initially proposed a 10% cap during the 2024 presidential campaign.
The average credit card interest rate in the United States is 23.97%, according to LendingTree.
Trump has also recently proposed banning large investors from purchasing single-family homes to address housing affordability concerns. Some conservatives have panned the proposal for not tackling the root problems of housing affordability.
Senate Majority Leader John Thune also signaled opposition to capping credit card rates Tuesday.
“I think that would probably deprive an awful lot of people of access to credit around the country,” Thune told reporters. “Credit cards would probably become debit cards. So, I mean, that’s not something I’m out there advocating for, I’ll put it that way.”
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Wake me when they do actually support him.
Usurers — like their cousins, pornographers — will always find a way.
I love Trump, but not everything that comes out of his mouth is the best advice. People who borrow money should understand what they are responsible for. Dont use credit cards or pay them off every month. Then your interest is zero.
Republicans are their own worst enemy. It’s almost like they want to lose this November.
But everything out of his mouth is passive aggressively opposed by the GOP in congress. They gave Biden everything, they give Trump nothing except the Big Beautiful Bill, after much fighting over it.
Whutta bunch of crap.
Meek Mike was a kid in the ‘70s when lots of states still had usury laws. He doesn’t know about or remember any of it.
There won’t be any lack of credit cash available. Just means the trash at the top of the big banks won’t be screwing the little people with the fine print.
“Conservatives and the banking industry, however, have long opposed capping credit card interest rates,”
I’m sure this is the reason. Conservatives hate this proposal.
I can’t think of price controls as the answer to anything. But I simply can’t understand how such a business model can be so fantastically profitable without some banks undercutting the rates. So much profit to go after.
Honor among thieves or quiet fixing - or what???
>>The average credit card interest rate in the United States is 23.97%, according to LendingTree.
Of course, if you pay your credit card balance off every month, you could have an interest rate of 0.0%. Only fools (except during the Carter administration) would agree to a 24% interest rate for any kind of long term debt.
No, thats not true. And in this case, I think its a valid debate.
Not everyone is as filthy rich as you are.
Wait till something unexpected happens and your only option is to use a credit card... your tune will change.
Makes sense to only do it for a year to see if it works or not.
Pay off your entire balance each month. Only spend what you can afford on those terms. I use the American Express Card, for just that reason.
There should be no relationship between you and "consumer credit". The American Express card merely gives you access to large purchases you don't need to write a check for, or carry cash around.
I have not used consumer credit cards since the late 80's. I figured it out.
Let’s see how many in here will actually get that reference. (It’s true though)
Mikee got the phone call.
Wow, that comes out of nowhere. Filthy rich? Maybe financially responsible. Maybe lived most of my live frugally so I could enjoy a comfortable retirement.
Blame others for your woes much?
Tying up people with debt beyond their means because it keeps the economy moving is fake wealth. The same banks who let people borrow at such rates will then fail during a market downturn and get a FDIC bailout.
Now everything is paid by rent, one way or another. Including government, whether you want it or not.
If you stop pouring 27% of your earnings down a hole, you would be amazed at how fast your "Affordability Crisis" solves itself. But then of course the media and news isn't allowed to let you hear that.
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