Banker Panic: Trump’s 10% Decree Triggers Financial Meltdown Fears

Panic is spreading through the corridors of America’s largest banks following Donald Trump’s shock decree to cap credit card interest rates at 10%. The Truth Social announcement, which sets a hard implementation date of January 20, has triggered fears of a financial meltdown. Trump framed the move as a rescue mission for a public being “ripped off,” but inside the boardrooms, it is being viewed as a catastrophic disruption of the free market.
The source of the panic is the simple math of lending. With inflation and default risks high, banks argue that a 10% cap makes it mathematically impossible to lend to millions of Americans without incurring massive losses. Major financial associations issued a dire warning that the policy would freeze the credit markets overnight, creating a liquidity crisis that could spiral into a broader economic recession.
Trump appears unmoved by the industry’s terror, citing the record $1.17 trillion in consumer debt as justification for his drastic action. He is betting that the public’s anger at high interest rates outweighs their fear of a credit crunch. By ignoring the pleas of the banking lobby, Trump is asserting his dominance over the financial sector in a way few presidents have dared.
Senator Elizabeth Warren dismissed the panic as premature, but only because she believes Trump is bluffing. She called the announcement a “joke” and a “fraud,” arguing that the president lacks the legal authority to trigger such a meltdown. Warren challenged Trump to prove he isn’t just creating chaos for political gain.
However, investor Bill Ackman validated the industry’s fears, warning that the panic is rational. He predicted mass card cancellations and a complete exit of banks from the subprime market. As January 20 looms, the banking world is bracing for impact, unsure if the meltdown is real or just a phantom threat.