The most unlikely political phone call of the year just happened between two fierce adversaries who discovered they actually agree on something that could save Americans billions of dollars.
Story Snapshot
- Trump proposed capping credit card rates at 10% for one year, prompting Warren to call for Congressional action
- The Massachusetts senator and President engaged in a rare bipartisan phone conversation Monday about consumer relief
- Banking industry warns the cap would devastate credit availability for millions of families and small businesses
- Republican-controlled Congress presents major hurdle despite support from select GOP lawmakers like Josh Hawley
From Truth Social to Phone Lines
Trump’s Friday Truth Social post advocating for a 10% credit card rate cap set off an unexpected chain reaction. Warren delivered a Monday morning speech criticizing Trump’s past record on affordability, but something remarkable happened next. Instead of the usual Twitter war, Trump picked up the phone and called the progressive firebrand directly.
The conversation represents a stunning departure from their typical exchanges. Warren, who has endured Trump’s “Pocahontas” taunts for years, found herself discussing legislative strategy with the man she’s spent years opposing. She emerged from the call with a clear message: “Congress can pass legislation to cap credit card rates if he will actually fight for it.”
The Mathematics of Middle-Class Relief
Credit card interest rates currently hover between 20-30% for most Americans, making minimum payments a financial trap that keeps families in perpetual debt. A 10% cap would represent the most significant consumer protection victory in decades, potentially saving households thousands annually on existing balances.
Warren has championed rate caps for years as part of her broader consumer financial protection agenda. Trump first floated the idea about a year ago but took no concrete action until now. The convergence creates an opening that neither progressive activists nor populist conservatives expected to see.
Banking Industry Sounds the Alarm
The American Bankers Association wasted no time condemning the proposal, arguing a 10% cap would prove “devastating” for families and small businesses by reducing credit availability. Bank stocks dipped following Trump’s announcement, signaling investor concern about potential profit margins.
Industry lobbyists warn that lenders would simply stop extending credit to higher-risk borrowers rather than accept lower returns. This argument has historically resonated with Republicans who view market-based lending as essential for economic mobility, creating a philosophical tension Trump must navigate with his own party.
Congressional Mathematics Don’t Add Up
Republican control of both chambers presents Warren and Trump with their biggest obstacle. While a handful of GOP lawmakers like Senator Josh Hawley and Representative Anna Paulina Luna have previously supported similar measures, the broader party remains skeptical of government intervention in lending markets.
Warren also pressed Trump on housing costs during their call, referencing bipartisan legislation that passed the Senate unanimously but remains stalled in the Republican-controlled House. The housing discussion reveals the broader affordability crisis driving both politicians toward unexpected collaboration, even as partisan gridlock continues blocking solutions.
Sources:
Sen. Elizabeth Warren says Congress could work with Trump to cap credit card rates
Trump phones Warren on affordability
