In a significant shift regarding access to credit for underserved Americans, Kevin Hassett, director of the National Economic Council, suggested that large U.S. banks might consider voluntarily issuing credit cards to individuals who lack credit history but possess sufficient income stability. Speaking to the media outside the White House, Hassett articulated this initiative in the context of President Donald Trump’s recent affordability agenda, which aims to make credit more accessible.
Just a week prior, Trump proposed capping credit card interest rates at 10%, a suggestion that faced backlash from industry executives and lobbyists who deemed it unfeasible. In light of these criticisms, Hassett’s alternative approach focuses on a specific demographic—individuals who, despite lacking traditional access to credit, demonstrate the income stability necessary to manage credit responsibly.
Hassett explained, “They could potentially voluntarily provide for people who are in that sort of sweet spot of not having financial leverage very much because they don’t have access to credit, but they have enough income and stability in their lives so they’re worthy of credit.” He further indicated that this initiative could be realized without the need for legislation, as banks may introduce what he termed “Trump cards” aimed at this target group, reflecting a more tailored effort to offer financial solutions without broader regulatory changes.
This commentary signals a potential scaling back of the administration’s more ambitious proposals for fundamental reforms within the credit card industry. Discussions among bankers this week indicated that, rather than embracing a mandated interest rate cap as proposed by Trump to take effect by January 20, banks might opt to limit access to credit, closing accounts for various customers instead.
When pressed about whether banks would be compelled to adopt the proposed rate cap, which would likely necessitate legislative action, Hassett noted ongoing conversations with numerous bank CEOs. He suggested that these executives see merit in the president’s recommendations and might be inclined to support new initiatives, albeit without mandated legislation.
Despite this optimistic outlook from Hassett, feedback from some banking representatives indicates a lack of engagement with the administration regarding the proposed “Trump card” concept. A prominent credit card issuer and a lobbyist for large financial institutions communicated to CNBC that they have had no formal discussions surrounding this initiative yet. The mixed responses from the banking sector underscore the challenges that remain in aligning governmental aspirations with the operational capabilities and strategies of major banks.
