Can bipartisanship survive in Donald Trump's Washington? Credit cards might offer a way. The president-elect has talked about capping credit card interest rates — a position also endorsed by progressives like Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.).
If Trump "really wants to take on the credit card industry, count me in," said Warren in a social media post. Sanders, too, is ready to work with Trump on capping the fees. If Trump follows up on his campaign pledge to limit credit rates to 10%, Sanders said to The New York Times, "absolutely I will be there."
Bringing Trump to the table "There's a catch," Natasha Sarin said at The Washington Post. Americans right now face credit card rates that can climb above 20%, so a new limit "sounds like a win for struggling Americans" who face "hefty costs" when trying to pay down their debt. But card companies like Visa and Mastercard say rate limits mean they'll be less likely to issue cards to risky borrowers, who might then turn to payday lenders who charge even higher rates.
Finding common ground on credit cards is part of the "new progressive strategy for warring with Trump," said Politico. If Sanders and Warren succeed, they get credit for "bringing him to the table" on progressive priorities, and if not, they can "bash him for it," said Politico. If Trump can't follow through on his campaign promise to cap rates, Warren said, he "should be held accountable."
Will Trump's 'populist streak' win? The financial markets are betting that Trump "won't fix high card rates," said The Wall Street Journal. Following the election, card lenders became "some of the best-performing stocks" in evident anticipation of favorable "regulatory changes." But there should be some caution on those companies' part: Trump's "populist streak" might win out, and so might the instincts of Vice President-elect J.D. Vance, who in the Senate co-sponsored a bill to limit rates.
Americans have a "record high" of $1.14 trillion in credit card debt, said CNN. But similar plans to cap have previously "stalled in Congress." If a cap passes, said LendingTree analyst Matt Schulz, companies might respond by eliminating credit card rewards programs to preserve profits. "The house," he said, "always wins." |