Trump’s ‘Affordability’ Ideas Drive Capitol Hill Talks
George Caldwell /
President Donald Trump has rapidly presented new economic ideas in recent days, shaping congressional discussions while giving some Republican members pause.
One of Trump’s proposals that turned the most heads was his urging credit card companies to cap interest rates.
“We will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY!” Trump wrote on Truth Social on Friday, calling for “a one year cap on Credit Card Interest Rates of 10%.”
At a Tuesday press conference with fellow members of the House leadership team, Speaker of the House Mike Johnson, R-La., appeared to caution reporters against alarm over Trump’s call.
“The president is the ideas guy,” Johnson told reporters, adding that Trump is “doggedly determined” to be “reducing the cost of living, bringing down prices for the American people. And he’s looking at every idea under the sun to do that.”
But Johnson also hesitated against forcing credit card companies to lower rates, a proposal he said “you would need legislation” to implement.
He added that such a move would prod companies to “just stop lending money, and maybe they cap what people are able to borrow at a very low amount.”
“I wouldn’t get too spun off about, you know, ideas that are out of the box, that are proposed or suggested. The thing about this president is he’s totally transparent, and he says often what he’s thinking out loud,” Johnson said.
Other Republicans expressed skepticism over the proposal. Sen. Rick Scott, R-Fla., told reporters there might be “unintended consequences” for capping credit card rates.
In the early hours of Tuesday morning, Trump also endorsed a Senate bill requiring banks to offer more credit card options and create competition in the market.
“Everyone should support great Republican Senator Roger Marshall’s Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff. Roger is a FANTASTIC Senator!!!” Trump wrote.
Later on Tuesday, Sen. Roger Marshall, R-Kan., and Sen. Dick Durbin, D-Ill., reintroduced their legislation, citing the president’s approval.
There may be signs the president is warming to the idea of working with Democrats on affordability, as well.
On Monday, Sen. Elizabeth Warren, D-Mass., announced Trump had called her shortly after she had delivered a speech criticizing his economic policies.
“After my speech, the President called me,” Warren wrote. “I told him that Congress can pass legislation to cap credit card rates if he will actually fight for it.”
The administration’s criminal investigation into Federal Reserve Chairman Jerome Powell has also created some unease on the Hill.
On Sunday, Powell announced the Justice Department had opened an investigation into him, alleging he lied during Senate testimony. President Donald Trump denied involvement in the probe to reporters.
Johnson, for his part, argues the investigation is not in his lane.
“That is not a congressional investigation,” he told reporters. “That’s a [Department of Justice] investigation. We have to let that play out.”
Senate Majority Leader John Thune, R-S.D., also reserved judgement for the case, but did express concern about the effects of the administration meddling with the Federal Reserve.
“If the Justice Department is pursuing something, I hope they have a smoking gun or something, because I don’t think you trifle with the Federal Reserve,” Thune said. “It’s critical to the financial markets in this country. It’s critical to our economy.”
Sen. John Kennedy, R-La., also warned against an escalation of a feud between the White House and the central bank, arguing it could lead to financial instability.
“The quickest way to unsettle the bond market would be to have the Federal Reserve and the executive branch of government start suing the bejesus out of each other,” Kennedy told reporters Tuesday.
Sen. Thom Tillis, R-N.C., who decided in July not to seek reelection, has also publicly criticized the investigation.