Senator Elizabeth Warren has raised questions about Donald Trump’s motives in announcing a 10% credit card rate cap, pointing to his history with the Consumer Financial Protection Bureau (CFPB). Warren noted that Trump has spent years trying to “shut down” or weaken the agency, which is tasked with protecting consumers from predatory lending. She called his sudden pivot to a rate cap a “joke” and a “fraud.”
Warren argued that if Trump were serious about lowering rates, he would strengthen the CFPB and use its existing powers to regulate the industry. Instead, she claims he is issuing empty threats on social media while continuing to support deregulation. Warren challenged the president to prove his commitment by backing real legislative reform.
The banking industry is also wary of the regulatory implications. Major financial associations issued a statement warning that the cap would be “devastating” for the economy. They argued that the policy would lead to a reduction in credit availability and drive consumers toward less regulated alternatives. The industry groups made it clear that they prefer the current market-based system.
Trump’s announcement, made on Truth Social with a January 20 start date, frames the policy as a way to stop the “ripping off” of the public. He blamed the Biden administration for high rates, ignoring the role of the CFPB.
Despite the skepticism, Senator Josh Hawley praised the move. His support suggests that the populist wing of the GOP is willing to overlook Trump’s past record on regulation in favor of his current message. As January 20 approaches, the role of the CFPB remains a central point of contention.