WASHINGTON — Today, the Progressive Policy Institute (PPI) issued the following statement in response to the Trump administration’s call for a one-year 10% cap on credit card interest rates:
“After dismissing the affordability crisis as a ‘hoax’ for weeks, President Donald Trump now recognizes that more Americans are facing financial hardship. Unfortunately, the president’s call for a one-year, 10% cap on credit card interest rates would lead to millions of working Americans losing access to traditional sources of credit.
“As outlined in our May report ‘Cutting Credit: How Rate Caps Undermine Access for Working Americans,’ a blunt interest rate ceiling set far below the current market rate will push higher-risk borrowers out of the market and toward more unregulated, predatory options, such as payday loans, subprime mortgages, or high installment loans.
“PPI encourages both the administration and Congress to turn toward smarter ways to reduce the affordability crisis, including enacting sensible permitting reform, reversing the course on the Trump tariffs, and putting an end to the president’s vendetta against renewable energy (in particular, offshore wind power).”
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us @ppi.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org
