A proposal backed by President Donald Trump to cap credit card interest rates is aimed at easing financial pressure on American families and boosting broader economic participation, according to political consultant Dick Morris, who discussed the plan Saturday on Newsmax’s "The Count."
Morris said the policy is rooted in the growing burden of household debt, noting that the average American family carries roughly $9,800 in credit card balances.
“When you’re charging 20 to 30% interest, as in many cases they do, that’s an enormous amount of money,” Morris said. “That’s money they can’t spend on cars or houses or other household items, or even the daily cost of living.”
Under the proposal, Trump would seek to cap credit card interest rates at 10%, significantly lower than current rates commonly charged by major card issuers. Morris argued that high interest rates suppress consumer spending and limit economic mobility, particularly for middle- and working-class families.
Morris said current practices persist largely because of how credit card companies structure their operations. While most states have usury laws that limit interest rates to around 10%, credit card companies often base their operations in Delaware, which does not impose such caps.
“The credit card companies come in and say, ‘We operate in Delaware, we’re a Delaware corporation,’” Morris said. “And Delaware is the only state that doesn’t regulate that. It doesn’t matter that they operate throughout the United States.”
According to Morris, court rulings have upheld this framework, allowing companies to apply Delaware’s permissive rules nationwide.
Trump’s plan, he said, would override that approach by treating credit card issuers as national corporations subject to uniform federal standards.
“What Trump is doing is sweeping that aside and saying, ‘No, you’re a national corporation, and you can’t charge interest rates of over 10%,’” Morris said, adding that the cap would also apply to defaulted credit cards.
Morris framed the proposal as part of Trump’s broader affordability agenda, which he said is focused on strengthening the economy by expanding participation rather than restricting it.
“When he talks about affordability, he talks about our economy going, including other people in it,” Morris said. “It’s obviously a very important part of what he’s trying to do.”
The proposal comes as credit card debt and interest rates remain near historic highs, intensifying debate over consumer protections and the role of federal regulation in the financial sector.
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Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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