Donald Trump has positioned himself as the champion of Main Street in a new battle against Wall Street, announcing a 10% cap on credit card interest rates. The policy, revealed on Truth Social, is set to begin on January 20. Trump accused credit card companies of “ripping off” the public with rates as high as 30%, explicitly siding with consumers against the financial elite.
The move addresses a major grievance of Main Street America: the crushing burden of debt. With credit card balances at a record $1.17 trillion, many families feel trapped by high interest rates. Trump’s proposal promises to break these chains, offering a populist solution to a complex economic problem. Senator Josh Hawley cheered the move, reinforcing the narrative of a Republican party fighting for the working class.
Wall Street, however, is fighting back. A coalition of major banking associations issued a statement warning that the cap would have disastrous consequences. They argued that the policy would force them to restrict credit, hurting the very Main Street businesses and families Trump wants to help. The banks contend that risk-based pricing is essential for a healthy economy.
Senator Elizabeth Warren offered a third perspective, criticizing both the banks and Trump. She called the announcement a “joke” and argued that Trump is merely pretending to fight for Main Street while lacking a real plan. Warren emphasized that without Congressional action, Wall Street will simply ignore the president’s demands.
Investor Bill Ackman also warned of a backlash, predicting that banks would cancel cards to protect their profits. As the battle lines are drawn, the conflict between populist politics and financial markets is set to define the coming weeks.
