Donald Trump has officially declared war on the financial establishment, issuing a stunning ultimatum to cap credit card interest rates at 10%. In a fiery late-night decree on Truth Social, the former president announced that this aggressive new policy would be enforced starting January 20. Trump’s rhetoric was uncompromising, accusing the banking sector of “ripping off” the American public with predatory rates of 30% and vowing to shatter their grip on consumer debt.
The announcement lands like a bombshell in the middle of a $1.17 trillion debt crisis. Trump is positioning himself not just as a reformer, but as a wartime president fighting for the economic survival of the working class. By slashing interest rates by more than half, he is directly attacking the profit margins of the world’s most powerful financial institutions. The move is a calculated escalation, designed to force a confrontation with Wall Street.
The banking industry is scrambling to respond to this existential threat. In a frantic joint statement, major financial associations warned that Trump’s “war” would have casualties—namely, the millions of Americans who will lose access to credit. They argued that a 10% cap is a declaration of bankruptcy for the lending market, forcing banks to sever ties with riskier borrowers to survive. The industry is preparing for a scorched-earth legal battle to stop the measure.
Senator Elizabeth Warren, usually a foe of the banks, found herself criticizing Trump’s tactics as reckless. She labeled the announcement a “joke,” arguing that declaring war on Truth Social is not the same as winning a legislative victory. Warren warned that without the ammunition of a Congressional bill, Trump’s ultimatum is merely bluster that will leave consumers unprotected when the smoke clears.
Despite the warnings, the populist base is rallying to the sound of the drums. Senator Josh Hawley cheered the move as a “fantastic idea,” eagerly joining Trump on the front lines. As the January 20 invasion date approaches, the battle lines are drawn between a populist president and the entrenched power of Wall Street.