Donald Trump has once again targeted “Sleepy Joe” Biden, blaming his administration for high interest rates while announcing a new 10% cap on credit card debt. In a Truth Social post, Trump claimed that rates of 20-30% were allowed to “fester unimpeded” during the Biden years. He promised that starting January 20, his administration would reverse this trend and protect the American public from being “ripped off.”
The political attack is woven into a major economic policy proposal. By capping rates at 10%, Trump is offering a tangible solution to the inflation and debt that have plagued consumers. With credit card balances at a record $1.17 trillion, the promise of lower bills is a powerful message for his base. Trump is effectively turning the issue of personal finance into a referendum on the previous administration.
However, the banking industry warns that Trump’s solution ignores economic reality. Major financial associations issued a statement arguing that high interest rates are a result of inflation and risk, not just political failure. They warned that capping rates at 10% would force banks to stop lending to millions of Americans, creating a credit shortage that would hurt the economy.
Senator Elizabeth Warren dismissed Trump’s announcement as a “joke,” arguing that he lacks the authority to implement the cap without Congress. She accused him of using the issue to score political points while refusing to support real reform. Warren noted that Trump’s past actions have often favored the very banks he is now attacking.
Despite the criticism, the move has been cheered by Senator Josh Hawley as a “fantastic idea.” The support from the populist right suggests that Trump’s message is resonating, even if the economics are disputed. As January 20 approaches, the battle over the “Sleepy Joe” legacy and the future of the economy continues.