Bill Ackman calls US President Trump’s credit card interest cap 'a mistake'

US President Donald Trump has called for a one-year cap on credit card interest rates at 10%, starting January 20, though he provided no details on how the plan would be implemented or enforced.

"Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%," PewaTrump wrote on Truth Social. "Please be informed that we will no longer let the American Public be 'ripped off' by Credit Card Companies."

The president, who had made a similar pledge during the 2024 election campaign, framed the move as a measure to improve affordability for consumers.

Trump’s announcement drew a response from financial leaders. US hedge fund manager Bill Ackman, CEO of Pershing Square and a Trump supporter in the last election, tweeted: "This is a mistake President @realDonaldTrump. Without being able to charge rates adequate enough to cover losses and earn an adequate return on equity, credit card lenders will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates higher than and on terms inferior to what they previously paid."

Several major banking advocacy groups—including the Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum, and Independent Community Bankers of America—issued a joint statement, warning that a 10% interest rate cap could "only drive consumers toward less regulated, more costly alternatives." Major US banks, including American Express, Capital One, JPMorgan, Citigroup, and Bank of America, had not responded to requests for comment at the time of publication.

The move comes amid other Trump administration efforts affecting credit card rules, including last year’s attempt to overturn a Biden-era regulation limiting late fees to $8, which a federal judge subsequently struck down.

Also Read: Donald Trump says US needs to own Greenland to deter Russia, China