The news: Bank of America and Citi are reportedly considering launching new credit cards with an interest rate capped at 10%, per Bloomberg—caving to a policy that banks almost universally oppose and that President Donald Trump has neither the legal authority to impose nor any mechanisms in place to enforce.

It’s unclear whether—like Bilt’s new card—the 10% rate would be a temporary promotion or what credit score would be required to get the new cards.

How we got here: In an effort to address growing dissatisfaction about affordability, Trump announced on social media that he would cap credit card interest rates at 10% for one year starting January 20, arguing that consumers were being “ripped off” by near-record-high rates.

• Before the pandemic, credit card interest rates were at 14.87%, per the Federal Reserve.
• After the Federal Reserve started raising interest rates, APRs surged to over 21%, the highest in more than 30 years.
• Rates have barely budged since—as of Q4 2025, rates were still at 20.97%.

That deadline came and went with no further explanation from the administration on how the policy would be enforced.

White House Press Secretary Karoline Leavitt called the policy “an expectation and frankly a demand,” per CBS, but conceded that she did not have “a specific consequence to outline” for banks that violated the demand.

At the World Economic Forum in Davos on Wednesday, Trump said that he would instead ask Congress to pass legislation capping interest rates rather than trying to enforce his regulation by Truth Social fiat.

Implications for issuers: For all their bluster and thinly veiled threats of legal action, banks are now breaking ranks over a demand that Trump himself seems to have already moved on from—and one that Speaker of the House Mike Johnson appears unwilling to entertain, per Axios.

Credit cards capped at 10% will likely be highly unattractive and highly exclusive, offering little to no rewards and serving only consumers with the healthiest credit scores. But superficial solutions on their own may be enough to appease the White House and get banks out of the president’s crosshairs.