United States President Donald Trump has called for a cap on credit card interest rates, which he believes will help Americans save for a home. Trump says that the maximum interest rate credit cards should charge is 10%, and proposed that this go on for a full year.
The average credit card rate was 19.62% as of January 21st, according to Bankrate.
“I’m asking Congress to cap credit card interest rates at 10% for one year, and this will help millions of Americans save for a home,” Trump said Wednesday during a speech at the World Economic Forum in Davos, Switzerland, according to a report by CNBC.
After Trump first called for a rate cap earlier this month, analysts at policy research and political forecasting firm Capital Alpha Partners put the odds of a 10% cap becoming law at 10% to 15%. “We haven’t seen anything since then that would prompt us to increase those odds,” Ian Katz, a managing director at Capital Alpha Partners, wrote in a research note Wednesday. – CNBC
This is a much better idea than Trump’s proposal to start issuing 50-year mortgages, or a debt for life scenario for most people.
50-Year Mortgages Won’t Make Housing More Affordable
Credit card companies are notorious for charging outrageous interest rates and cashing in on people’s inability to afford basic necessities, thanks to the ruling class’s massive inflation tactics.
Affordability Crisis: Food Prices Creating Financial Stress
Consumers should not be holding out for a Federal Reserve interest rate cut either. Experts anticipate that the Fed will hold rates steady at the end of its two-day meeting this week, according to the CME FedWatch tool.
But, in the meantime, others say lower-interest-rate credit cards already exist. “There are plenty of cards with 0% promotional offers on both balance transfers and new purchases,” Ted Rossman, principal analyst at Bankrate, wrote in an email. Finding cards that offer “12-24 months interest-free is pretty common, he said.
However, those already locked into an interest rate or those with lower credit scores could still benefit from Trump’s proposal. Let’s not forget, though, that the ruling class created this affordability crisis and caused the inflation we all see at the grocery stores.