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Bill Ackman said President Donald Trump’s call to impose a one-year cap on credit card interest was a “mistake.”
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The hedge fund billionaire said a rate cap could lead to millions of people having their credit cards cancelled.
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Trump on Friday called for a 10% cap on credit card interest for one year.
Bill Ackman didn’t mince words when giving his take on President Donald Trump’s call for a temporary cap on credit card rates.
In a since-deleted
“This is a mistake, President,” Ackman wrote. “Unable to charge sufficient rates to cover losses and earn an adequate return on capital, credit card lenders will cancel the cards of millions of consumers who will have to turn to loan sharks to obtain credit at higher rates and on lower terms than what they previously paid.”
Trump had taken to Truth Social earlier on Friday in a new effort to address the hot-button political issue of “affordability,” saying his administration intended to target lenders charging interest rates of “20 to 30%.”
“We inform you that we will no longer allow you to ‘rip off’ the American public,” he said. “Effective January 20, 2026, I, as President of the United States, call for a one-year cap on credit card interest rates of 10%.”
Such a limit would likely require congressional authorization. It is unclear what steps the president could take to prevent this.
In a new post on Saturday, Ackman, CEO of Pershing Square Capital Management, said Trump’s “goal of lowering credit card interest rates” was “valuable and important” but reiterated his concerns about a 10% cap.
“I have no investments in the credit card industry, so I’m not an expert, but the credit card market seems very competitive,” Ackman continued. “The best way to reduce tariffs would be to make them more competitive by making the regulatory regime more conducive to new entrants and new technologies.”
Trump, who promised to “lower prices immediately” in office, recently focused on the issue of affordability.
New York City Mayor Zohran Mamdani won in November after running a campaign focused on voters’ concerns about the cost of living.
Business Insider has contacted the White House for comment.
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