Trump, again, calls on Congress to cap credit card rates

• Key insight: Trump continued to call on Congress to pass credit card legislation. 
• Expert quote: “Whatever happened to usury?”  — President Donald Trump.
• What’s at stake: Earlier in the day, JPMorganChase CEO Jamie Dimon said that a 10% rate cap would be an “economic disaster.” 

WASHINGTON — President Donald Trump in Davos, Switzerland, renewed his call for Congress to cap credit card interest rates at 10% for one year. 

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Trump’s comments contradict those made last week by his top economic advisor, Kevin Hassett, who said that he expects banks to voluntarily issue “Trump cards,” obviating the need for Congress to pass legislation that would set all credit card rates at that level.

Trump’s speech at the World Economic Forum was originally framed as an economic-affordability speech but didn’t address affordability issues until roughly an hour into his comments. Instead, Trump talked at length about his bid to take over Greenland, at times seeming to confuse the country with Iceland, saying that he does not plan to use military force to invade Greenland but insisting that Denmark cuts a deal with the U.S. for it.

Still, Trump did talk about policy proposals he had already outlined prior to the speech, one of which is the credit card 10% cap. 

“Whatever happened to usury?” Trump said. 

Banks have pushed back on the idea. Earlier in the day at Davos, JPMorganChase CEO Jamie Dimon said that the interest rate cap would be an “economic disaster.” 

“And I’m not making that up because of our business, we would survive it, by the way,” he said. “In the worst case, you would have to have a drastic reduction of the credit card business.”

Trump also bragged about an executive order that aims to ban large, institutional investors from purchasing single-family homes, and said that such an idea would need legislation to actually have an effect, which Trump said he anticipated Congress would pass. 

“Wall Street giants and institutional investment firms, many of you are here, many of you are good friends of mine, many of you are supporters,” Trump said. “Sorry to do this.” 

Trump’s support of such a ban adds considerable political weight at a time when a housing bill is currently making its way through both chambers of Congress, providing a convenient legislative vehicle for lawmakers to codify a ban. The housing package passed the Senate Banking Committee unanimously, while the House Financial Services Committee is currently considering its own version. 

“Homes are built for people, not for corporations, and America will not become a nation of renters,” Trump said. “We’re not going to do that.”