Bank of America, Citigroup Weigh 10% Credit Card Rate to Follow Trump’s Call

Bank of America and Citigroup are reportedly exploring the option of offering credit cards with a 10% interest rate in an effort to align with President Trump’s recent directive to cap rates at that level for one year, Bloomberg reported Thursday.

Sources told the news outlet the two banks are separately evaluating credit card offerings at the 10% rate. Shares of Bank of America and Citigroup rose 1.2% and 1.8%, respectively, following the news.

Earlier this month, Trump ordered credit card issuers to limit interest rates to 10% for one year, arguing that such a cap would protect consumers who have been “ripped off” by rates of 20% to 30%. He said he plans to ask Congress to approve the proposal.

Supporters of the cap, first suggested by Trump during his campaign, argue it would ease the financial burden on consumers struggling with inflation. Banking groups, however, warn that a government-imposed limit could restrict credit access to high-income, high-credit customers and require lenders to end popular rewards programs funded by interest and fees.

“We’re working hard,” Bank of America CEO Brian Moynihan said in a Bloomberg TV interview Thursday. “We’re trying to come up with solutions.” He added that a 10% cap could affect consumer spending, though the bank has been in discussions with the Trump administration on the proposal.

Other top financial leaders have voiced concerns as well. Citigroup and Wells Fargo executives warned of potential negative impacts, while JPMorgan CEO Jamie Dimon called a 10% cap “an economic disaster” during the World Economic Forum in Davos, though he emphasized that the banks support affordability.

Trump on Thursday also filed a $5 billion lawsuit against JPMorgan Chase and Dimon over allegations of politically motivated “debanking.”

Bank of America and Citigroup would not be the first to heed Trump’s call: New York-based startup Bilt recently launched credit cards at a 10% APR for the next 12 months, and many issuers, including Bank of America and Citi, already offer introductory rates as low as 0% for new customers.

The 10% credit card initiative is part of Trump’s broader efforts to address the US affordability crisis, which have included a $200 billion mortgage bond-buying program and an executive order limiting institutional purchases of single-family homes.