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interest rates
Sweeping Coalition Backs AOC-Sanders Bill to Cap Credit Card Interest Rates at 10%
"Working families continue to struggle with unprecedented credit card debt and deserve to see Congress take legislative action to address this growing crisis."
Feb 06, 2026
As polling continues to show US consumers are pessimistic about an economy in which they face rising costs for everything from groceries to healthcare and housing under President Donald Trump, a "historic and diverse coalition" this week called on Congress to pass a bipartisan bill that would cap credit card interest rates at 10%.
The current average credit card interest rate is nearly double that, at 19.61%, according to Bankrate. It was even higher, over 20%, when US Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) introduced the bill a year ago. Reps. Alexandria Ocasio-Cortez (D-NY) and Anna Paulina Luna (R-Fla.) lead the legislation in the House of Representatives.
Their push came in response to an unfulfilled pledge from Trump, whose campaign said in September 2024 that he "has promised to cap interest rates at 10% to provide temporary and immediate relief for hardworking Americans who are struggling to make ends meet and cannot afford hefty interest payments on top of the skyrocketing costs of mortgages, rent, groceries, and gas."
The Thursday letter to congressional leaders—signed by dozens of civil rights, consumer protection, labor, veteran, and other groups—points to that promise, as well as Trump's January social media post calling for a one-year 10% cap. It also notes that "in response to widespread Wall Street opposition to the president's recent announcement, Trump officials have begun to backtrack—instead promoting 'Trump Cards' that banks could voluntarily offer with temporary 10% interest rates."
"While the Trump administration appears to be twisting itself into knots to appease Wall Street bankers, working families continue to struggle with unprecedented credit card debt and deserve to see Congress take legislative action to address this growing crisis," the coalition stressed. "We urge your offices/committees to advance these bipartisan bills immediately and make this policy a reality."
Illustrating the need for the policy, the letter states that "Americans owe $1.21 trillion in aggregate credit card debt," "groceries now make up the majority of credit card purchases for most Americans," and "older Americans are charging everyday purchases like gas, food, healthcare expenses, and even utilities on their credit cards."
"Not only are more Americans having to lean on their credit cards to make ends meet, but more are falling behind. Today, more than 12% of credit card debt is 90 days or more past due," the letter continues. "As Americans find themselves deeper in debt, credit card companies have been raking in record profits."
The federal bill would "save families $100 billion per year and provide interest savings of $899 per person on average per year," but also "not restrict most Americans' access to credit—directly refuting common banking lobbyist talking points," the coalition explained, citing research from Vanderbilt University. "Instead, banks would absorb the rate cut through a combinationof reduced profits, reduced advertising expenses, and reduced rewards to customers with lower credit scores (who would benefit more from the rate cuts)."
It also cites a recent analysis by the letter's lead group, Protect Borrowers, showing that "credit card delinquency rates in states that President Trump won are nearly 5 percentage points higher than in other states—with states like Mississippi, Louisiana, Alabama, Arkansas and South Carolina having the highest credit card delinquency rates."
When big banks charge 24% or 30% interest on credit cards, they are not engaged in the business of "making credit available." They are involved in extortion and loan sharking.Yes, we need to cap credit card interest rates at 10% and stop Wall Street from ripping off Americans.
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— Senator Bernie Sanders (@sanders.senate.gov) February 2, 2026 at 4:36 PM
"By providing billions of dollars in economic relief to working families, this legislation directly responds to the promises that candidate Donald Trump made to the American people last year," the groups wrote. "Recent polling has found that it is also incredibly popular by a jaw-dropping 8-to-1 margin among American voters across all political parties, spanning age, gender, race, and education level."
"It is clear: the American people support policymakers taking action to address the growing credit card crisis that is drowning millions of American families across the country in debt," the coalition concluded. "We stand ready to work with your offices to ensure that this bill becomes law and that working families get the economic relief they were promised and deserve."
Sanders and Hawley have similarly highlighted Trump's calls for the 10% rate cap in Fox News op-eds pushing for their legislation. In a Monday piece, Sanders wrote that "when Wall Street's greed and recklessness brought the economy to the verge of collapse in 2008, causing millions of Americans to lose their homes, jobs, and life savings, the taxpayers came to the rescue."
"The Federal Reserve gave these huge banks trillions of dollars in emergency loans at virtually zero interest. We bailed out the banks," he added. "Now it's time for Congress to stand with working families, end Wall Street greed, and pass legislation that caps credit card interest rates at 10%."
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How Will the Billionaires React If Trump Cancels the 2026 Elections?
We now know that most of the big money boys couldn’t care less about democracy, but it's worth asking how the markets will react if the current US president tries to end American democracy.
Jan 14, 2026
The lack of market reaction to the news that Trump ordered his Justice Department to investigate criminal charges against Fed Chair Jerome Powell surprises many people. After all, everyone knows that the claims about cost overruns being the basis for the investigation is nonsense. Trump wants to threaten Powell with criminal charges because he ignored Trump’s demand that he lower interest rates.
This ordinarily would be seen as a very big deal. Ever since Nixon, presidents have been reluctant to be seen as pressuring the Fed. In fact, their concern on this issue often seemed absurd to my view. President Biden didn’t want his Council of Economic Advisors to even comment on interest rate policy, as though giving a view based on the economic data would be undue pressure.
But there is a big difference between presenting an economic argument and threatening to imprison a Fed chair who disagrees. And we now see which side Trump comes down on.
But apparently, the markets are just fine with this new threat. The major stock indexes all rose on Monday, although bond prices fell slightly, pushing long-term rates higher. The dollar also fell modestly.
The non-reaction of the stock markets might seem surprising. After all, the independent Fed is considered a sacred feature of US prosperity. There is no shortage of economists who will insist that a Fed that is subordinate to the whims of a president is quick route to double-digit or even triple digit inflation. (I’m more agnostic on this one, but the markets generally don’t listen to me.)
Anyhow, Trump is now not just looking to fire an insubordinate Fed chair, he’s looking to throw him in prison. And the markets just yawned.
This reaction should cause us to start asking how the markets might react if Trump just cancels or outright steals the 2026 elections in order to keep his lackeys in control of Congress. Under any other modern president, the fear of a cancelled or stolen election would be silly. While they might have used dubious tactics leading up to an election, we could be comfortable that the votes would be counted, and the outcome would be binding. (Florida in 2000 is a major exception.) No one ever suggested that an election would be cancelled.
But Trump has made it clear that he considers both cancellation and ordering that some votes not be counted as serious options in his recent New York Times interview. No one can be safe in assuming that we will have a normal democratic election this year.
Given this reality, we might want to speculate on how the markets would react in the event that Trump does decide to end American democracy. We now know that most of the big money boys couldn’t care less about democracy. Jeff Bezos, Mark Zuckerberg, and Tim Cook have been happy to cozy up to Trump in Mar-a-Lago, even as he violates one democratic norm after another. Elon Musk has made it clear that he has contempt for democracy, insofar as it means allowing non-white people to vote.
This gang would obviously have no moral issues with a cancelled or stolen election. But what about the economics?
Trump has already made it clear that he will favor businesses whose leaders praise him and punish those who criticize him. His most recent effort in this direction was saying that he intended to ban ExxonMobil from access to Venezuelan oil because its CEO said what every oil analyst has said since Trump became president of that country: it will be difficult for companies to profitably invest there.
The economies of countries where the leader can reward or punish companies on a whim tend to not do very well. The courts have provided a limited check on Trump’s whims as has even this pathetic Congress. However, if Trump is deciding who serves in Congress, the checks will be gone. We will have full-rule by our demented 79-year-old president.
Perhaps markets will be fine with that. With enough rear-end licking some companies may still do fine, but it would seem on the straight economics most people with money would probably prefer to invest in a serious country. Let’s hope we don’t have to find out.
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Fed Chair Powell Says He Won't Bow to Trump 'Intimidation' as DOJ Launches Criminal Probe
"This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure," said Federal Reserve Chair Jerome Powell.
Jan 12, 2026
Federal Reserve Chair Jerome Powell revealed in a defiant statement late Sunday that the US Department of Justice is threatening him with criminal charges, a step the central bank chief condemned as "intimidation" for not bowing to President Donald Trump's demands on interest rate policy.
"I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law," Powell said in a video statement. "But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure."
Powell said that the Justice Department, which Trump has repeatedly wielded against his political opponents, served the Federal Reserve on Friday with grand jury subpoenas related to the central bank chair's congressional testimony on Fed office building renovations.
But Powell, who was first nominated to his role by Trump in 2017, said accusations that he misled lawmakers about the scope of the renovations were a "pretext" obscuring the real reason the Justice Department is pursuing a criminal indictment.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," said Powell. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation."
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
The New York Times reported Sunday that the investigation into Powell was approved late last year by Trump loyalist Jeanine Pirro, a former Fox News host now serving as US attorney for the District of Columbia. Trump claimed he didn't "know anything about" the Powell investigation, but added, "He's certainly not very good at the Fed, and he's not very good at building buildings."
Powell, whose term as Fed chair ends in May, has repeatedly defied Trump in public, dismissing the president's threat to remove him from the helm of the central bank as unlawful and, at one point, fact-checking Trump to his face about the estimated cost of Fed renovations.
Powell has also publicly blamed Trump's tariff policies for driving up inflation.
"It's really tariffs that are causing the most of the inflation overshoot," Powell said last month, following the central bank's December 10 meeting. The Fed cut interest rates three times last year, bringing them down by a total of 75 basis points.
But Trump has pushed for much more aggressive rate cuts and attacked Powell—who does not have sole authority over interest rate decisions—as a "moron" and "truly one of my worst appointments."
Lisa Gilbert, co-president of the watchdog group Public Citizen, applauded Powell's "bold defense of the rule of law" and said that Fed policy "should not be subject to intimidation and bullying by Trump loyalist prosecutors."
"The Department of Justice should serve the rule of law, not the vindictive instincts of an authoritarian president," said Gilbert. "And it should never misuse its criminal enforcement powers to pursue pretextual prosecutions against the president’s political opponents or those who show a modicum of independence.”
"He is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends."
Democratic members of Congress also rose to Powell's defense.
"Threatening criminal action against a Fed chair because he refuses to do the president's bidding on interest rates undermines the rule of law, which is the very foundation for American prosperity," Rep. Ro Khanna (D-Calif.) wrote on social media.
Sen. Chris Murphy (D-Conn.) added that "no one should lose their sense of outrage about what is happening to our country."
"This is an effort to create an autocratic state. It's that plain," said Murphy. "Trump is threatening to imprison the chairman of Federal Reserve simply because he won't enact the rate policy Trump wants."
Sen. Elizabeth Warren (D-Mass.), a frequent critic of Powell and Fed rate policy during his tenure, wrote late Sunday that Trump "wants to nominate a new Fed chair AND push Powell off the board for good to complete his corrupt takeover of our central bank."
Powell's term as a Fed governor runs through January 2028. Trump's top economic adviser, Kevin Hassett, is widely seen as the president's likely pick to replace Powell as chair of the central bank.
Warren called on the Senate to "not move ANY Trump Fed nominee" amid the DOJ investigation into Powell.
"He is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends," Warren said of Trump.
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