In a move aimed at bolstering credit access for underserved Americans, Kevin Hassett, the director of the National Economic Council, suggested on Friday that large U.S. banks could voluntarily introduce credit cards for individuals who currently lack credit access but have enough income to warrant it. This initiative aligns with the broader affordability agenda championed by President Donald Trump.
Hassett’s comments followed President Trump’s controversial proposal to impose a 10% cap on credit card interest rates. The suggestion has faced substantial pushback from financial industry executives and lobbyists, who argue that such a regulation could lead to adverse consequences, including the potential reduction of consumer credit options.
During an interview on Fox Business, Hassett emphasized the possibility of banks issuing what he termed “Trump cards” to those in a “sweet spot”—individuals who may not have taken on significant debt but possess stable incomes that justify credit. “They could potentially voluntarily provide for people who are in that sort of sweet spot of not having financial leverage very much,” Hassett explained.
The proposed concept hints at a shift in the administration’s strategy regarding credit expansion. By suggesting a voluntary program rather than a mandated interest rate cap, the administration appears to be retreating from the notion of broad regulatory changes that would require legislative approval. This pivot follows feedback from bankers during discussions of their fourth-quarter results, where many expressed that a cap on interest rates might prompt them to close accounts rather than comply.
Hassett addressed questions about whether banks would be compelled to comply with the proposed rate cap, clarifying that changes to the industry would likely sidestep legislation. Instead, he indicated ongoing conversations between the administration and top executives at major banks who might see merit in adapting their offerings in line with Trump’s ideas.
However, despite Hassett’s optimism about the banks’ willingness to collaborate on economic initiatives, a major credit card issuer and a bank lobbyist representing large financial institutions informed CNBC that they have yet to engage in discussions regarding the “Trump card” proposal. This highlights a gap between administrative aspirations and the financial sector’s receptiveness to new credit solutions at this time.
