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Americans would save $100B if credit card rates were capped as Trump proposed, researchers say
A Vanderbilt University study finds banks could remain profitable by relying on interchange fees, even if credit card interest rates are capped at 10%, potentially saving Americans $100 billion annually.
- During his 2024 presidential bid, Donald Trump suggested limiting credit card interest rates to 10% for a limited period.
- This proposal gained political momentum as Senators Josh Hawley and Bernie Sanders, along with Rep. Alexandria Ocasio-Cortez, introduced matching bills in Congress.
- A study from Vanderbilt University estimates that capping credit card interest rates could reduce annual interest expenses for U.S. consumers by approximately $100 billion, despite potential adjustments to banks' existing business strategies.
- Brian Shearer, the paper's author, explained that while there would be some reduction in rewards, the situation is not as dire as some commentators suggest. He noted that since banks finance rewards through merchant fees, they would still remain largely profitable even under the proposed cap.
- The findings suggest the credit card industry could adapt by modestly reducing rewards, with consumers—especially those with low credit scores—likely benefiting from significant interest savings.
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Americans would save an estimated $100 billion a year in interest costs if President Donald Trump's campaign proposal to cap credit card interest rates at 10% were implemented, according to a…
Associated Press News+30 Reposted by 30 other sources
Americans would save $100B if credit card rates were capped as Trump proposed, researchers say
A new paper from Vanderbilt University suggests Americans could save about $100 billion annually if credit card interest rates were capped at 10%, as proposed by President Donald Trump.
·United States
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Total News Sources35
Leaning Left6Leaning Right1Center20Last UpdatedBias Distribution74% Center
Bias Distribution
- 74% of the sources are Center
74% Center
L 22%
C 74%
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