President Trump’s unexpected phone call to Senator Elizabeth Warren about capping credit card rates at 10% has created a rare moment of potential bipartisan cooperation that could deliver real relief to American families drowning in credit card debt.
Story Highlights
- Trump proposed a one-year 10% cap on credit card interest rates via Truth Social, prompting Warren to offer bipartisan collaboration
- The unlikely allies spoke by phone Monday after Warren’s speech, discussing both credit card caps and stalled housing legislation
- Banking industry strongly opposes the proposal, warning it could reduce credit availability for millions of Americans
- Republican-controlled Congress presents major hurdle despite some GOP support from lawmakers like Josh Hawley and Anna Paulina Luna
Trump Revives Rate Cap Proposal
President Trump reignited his support for credit card interest rate caps Friday with a Truth Social post proposing a temporary 10% ceiling to address affordability concerns. The proposal marks a return to populist economic messaging, targeting an issue that directly impacts millions of American families struggling with credit card debt averaging 20-30% interest rates. Trump had floated similar ideas roughly a year ago but took no concrete action during his previous term, drawing criticism from consumer advocates.
Unlikely Alliance Forms Despite Past Tensions
Warren confirmed Monday that Trump called her following her speech criticizing his affordability record, creating an unexpected dialogue between two frequent adversaries. The Massachusetts senator, long known for her consumer protection advocacy, told Trump that “Congress can pass legislation to cap credit card rates if he will actually fight for it.” Their conversation also covered housing costs, with Warren pushing stalled bipartisan housing supply legislation that passed the Senate unanimously but remains blocked in the House by Republican leadership.
Banking Industry Mobilizes Opposition
The American Bankers Association and major credit card issuers have launched fierce opposition to the proposed rate cap, arguing it would be “devastating” for families and small businesses. Industry representatives warn that a 10% ceiling would force lenders to drastically reduce credit availability, particularly for higher-risk borrowers who rely on credit cards for emergency expenses. Bank stocks already dipped following Trump’s Friday announcement, signaling market concern about potential legislative action that could significantly impact lending profits and business models.
Conservative supporters of the proposal argue that predatory lending practices have trapped working families in cycles of debt, making this a legitimate consumer protection issue. However, the banking industry’s warnings about reduced credit access present a genuine concern for Americans who depend on credit availability during financial emergencies, creating a complex policy challenge that balances consumer relief against market functionality.
Congressional Reality Check
Despite Trump’s influence over the Republican Party, the rate cap faces significant hurdles in the GOP-controlled Congress where most members traditionally oppose market interventions. Only a handful of Republicans, including Senator Josh Hawley of Missouri and Representative Anna Paulina Luna of Florida, have previously supported similar measures. The proposal tests the boundaries of Trump’s populist appeal against traditional conservative economic principles and powerful banking industry lobbying efforts that have historically blocked such legislation.
Sen. Elizabeth Warren says Congress could work with Trump to cap credit card rates. https://t.co/ZLqTpnQcub
— CBS News (@CBSNews) January 13, 2026
Warren’s strategic positioning as a willing partner demonstrates her pragmatic approach to advancing consumer protection goals, even when it means working with her longtime political adversary. The success of any legislation will ultimately depend on Trump’s willingness to pressure his own party and overcome entrenched opposition from financial sector allies who have traditionally supported Republican candidates and causes.
Sources:
Sen. Elizabeth Warren says Congress could work with Trump to cap credit card rates
Trump phones Warren on affordability
