10% interest rate cap is opposed by the US banking industry, Hassett proposes "Trump credit card" as an alternative solution.

White House chief economic advisor and director of the National Economic Council Kevin Hassett said on Friday that large U.S. banks may voluntarily offer credit cards to some Americans who have long been without access to credit but have stable incomes in response to President Trump's push to "reduce the cost of living" policy. Just a week ago, Trump publicly called on banks to cap credit card interest rates at 10%. This proposal was widely opposed by bank executives and industry lobbying groups this week, with the industry believing that the measure would be difficult to implement and could have an impact on consumption and the financial system. In this context, Hassett proposed a more moderate and narrower alternative. In an interview, he said that banks could target those who "have not fully leveraged financial leverage, primarily because they lack credit channels to obtain credit cards, but whose income levels and stability are enough to support credit limits." Hassett stated, "These people do not have much financial leverage, not because of high credit risk, but because they lack credit channels; but they have enough income and stability to deserve credit support." He further pointed out that this proposal may not necessarily need to be pushed through legislation. "Our expectation is that legislation may not be necessary, as banks may voluntarily introduce some new 'Trump T. Rowe Price Group' cards to serve the relevant population." Market analysts believe that this statement may indicate that the White House is weakening efforts for comprehensive and mandatory reform of the credit card industry. Previously, industry warnings were widespread, stating that if a 10% interest rate cap were forcibly implemented, banks might choose to close a large number of customer accounts rather than continue lending at low rates. This week, several banks disclosed in their fourth-quarter earnings reports that if forced to issue cards at a 10% interest rate, the most realistic response would be to reduce the size of their credit card business, rather than offer lower interest rates. Hassett made these statements in response to the question of whether banks would be forced to implement an interest rate cap. Analysts point out that if an interest rate cap were to be forcibly implemented, it would likely require new congressional legislation support. He also revealed that the government has communicated with "CEOs of several large banks," some of whom believe that the president's judgment on "affordability" has a certain level of reality. However, as of now, the "Trump T. Rowe Price Group" cards are still in the conceptual stage. A major credit card issuing institution and a lobbyist representing large banks told the media that they have not had any substantive discussions with the government on this idea. On Friday, the payment concept sector saw a general rise, with Bread Financial (BFH.US) rising over 4%, Synchrony Financial (SYF.US) rising over 3%, and American Express Company (AXP.UE) rising over 2% at closing. Large bank stocks also rose, with Bank of America Corp (BAC.US) rising over 0.7%, Citigroup (C.US) rising 0.49%, and JPMorgan Chase (JPM.US) rising over 1%.