Warren Backs Trump's 10% Credit Card Cap: What It Means for Your Debt
Senator Elizabeth Warren says she is ready to pass a 10% cap on credit card interest with President Trump, a move that could save borrowers hundreds a year.
Image: Wikimedia Commons / Office of Senator Elizabeth Warren
WASHINGTON, Nov. 10 — Senator Elizabeth Warren said on Sunday that she is ready to work with President Donald Trump on a bill to cap credit card interest rates at 10 per cent, days after Democrats won both chambers of Congress.
Warren, a Massachusetts Democrat expected to chair the Senate Banking Committee in January, made the offer on the CBS programme Face the Nation. “President Trump himself said that he wants to reduce interest rates on credit cards to 10 percent. I got the bill. I’m ready to go,” she told host Margaret Brennan.
Key Takeaways
- Warren said she is “ready to go” on a 10 per cent cap, citing Trump’s own support for the idea.
- The Federal Reserve put the average bank credit card rate at 22.36 per cent in the third quarter of 2026, more than double the proposed cap.
- A $5,000 balance carried for a year costs about $1,118 in interest at 22.36 per cent, against $500 at 10 per cent.
How Much Would a 10% Credit Card Cap Save Borrowers?
The gap between today’s rates and the proposed cap is the whole story. At the Federal Reserve’s third-quarter average of 22.36 per cent, a $5,000 balance held for a year accrues about $1,118 in interest before fees. At 10 per cent it costs $500, a difference of about $618 a year.
Rates were not always this high: the average was 13.9 per cent a decade ago and 22.3 per cent in November 2025. Americans owed $1.26 trillion on credit cards in the second quarter of 2026, the Federal Reserve Bank of New York said.
| Balance | At 22.36% | At 10% | Saving |
|---|---|---|---|
| $1,000 | $224 | $100 | $124 |
| $5,000 | $1,118 | $500 | $618 |
| $10,000 | $2,236 | $1,000 | $1,236 |
What Is the Sanders-Hawley Credit Card Cap Bill?
Warren is not starting from scratch. On Jan. 10, Trump called for a one-year cap at 10 per cent, starting Jan. 20, saying Americans were being overcharged. That date passed without action.
The best-known Senate version, from Senators Bernie Sanders and Josh Hawley, would run for five years rather than one. Warren did not say which bill she meant, so the duration and the scope of the cards covered are still to be settled.
Warren also warned companies she said were cheating American families to expect investigations, and said Democrats have housing legislation ready. “President Trump says he wants to do more on housing. We’re ready. We have the bills ready to go,” she said.
When Could the 10% Credit Card Cap Become Law?
No vote is scheduled. The new Congress convenes in January, when Warren is expected to take the gavel of the Senate Banking Committee, the panel that would handle the bill first. Democrats won the House and Senate on Nov. 3, and Trump said afterwards that he wanted to work with the opposition.
Borrowing costs are rising. Consumer prices rose 0.4 per cent in October, according to the U.S. Bureau of Labor Statistics, and markets now price a December rise in the Federal Reserve’s benchmark rate as near certain. The October inflation report pushed those odds higher, and Federal Reserve Governor Christopher Waller has said a half-point move should be considered.
Frequently Asked Questions
How much would a 10% credit card interest rate cap save me?
It depends on your balance. On a $5,000 balance held for a year, the saving is about $618, at the Federal Reserve’s 22.36 per cent average against a 10 per cent cap. The saving is zero if you pay your bill in full each month.
Will the 10% credit card cap apply to all credit cards?
No bill has passed, so the scope is not settled. The Sanders-Hawley version runs five years while Trump asked for one; neither the duration nor the coverage has been agreed.
When will the Senate vote on the 10% credit card cap?
No vote is scheduled. The new Congress convenes in January, when Warren is expected to chair the Senate Banking Committee, which would take up the bill first.
What is the average credit card interest rate in the US right now?
The Federal Reserve put the average bank credit card rate at 22.36 per cent in the third quarter of 2026, against 13.9 per cent a decade ago and 22.3 per cent in November 2025.
The new Congress convenes in January, when Warren is expected to take the Banking Committee gavel. Whether the cap runs for one year or five, and which bill moves first, will be decided then.
