U.S. Administration Targets Credit Card Interest Rate Regulation

A major policy announcement signals plans to cap credit card interest rates at 10% effective January 20, 2026. The move directly addresses widespread concern about consumer lending practices, citing current rates ranging from 20% to 30% as unsustainable for borrowers.

This regulatory intervention reflects growing pressure on financial institutions to moderate lending costs. Such macroeconomic policy shifts often ripple through broader financial markets, including traditional banking sectors and alternative financial instruments.

The proposed timeline gives credit card issuers roughly one year for rate restructuring, potentially reshaping consumer credit dynamics and household debt management strategies.