Donald Trump has launched a new front in his war on “Sleepy Joe” economics, announcing a 10% cap on credit card interest rates. In a Truth Social post, Trump explicitly blamed the Biden administration for allowing rates to climb to 20-30%. He promised that starting January 20, his administration would reverse these trends and stop the “ripping off” of the American public.
The policy is a direct rejection of the economic status quo. By capping rates, Trump is signaling that he does not believe the market can correct itself. He is using the power of the state to intervene on behalf of consumers, a move that breaks with traditional conservative orthodoxy.
The banking industry is fighting back. Major financial associations issued a statement defending the current system and warning that the cap would be “devastating.” They argued that interest rates reflect the reality of inflation and risk, both of which have risen in recent years. The banks positioned themselves as victims of political scapegoating.
Senator Elizabeth Warren was also critical, calling the announcement a “joke.” She argued that Trump is using the issue to score political points rather than solving the problem. Warren noted that true reform requires a bipartisan effort, not just attacks on political opponents.
Despite the criticism, the move has been popular with voters. Senator Josh Hawley called it a “fantastic idea,” highlighting the appeal of Trump’s message. As the January 20 deadline nears, the battle over the legacy of “Sleepy Joe” economics is far from over.