Trump is urging Congress to cap credit card interest rates at 10% for one year, citing the need to help Americans facing cost-of-living challenges. The banking sector warns that such a cap could limit credit access for many consumers.

Jerome Powell, the Federal Reserve Chair, is under investigation after the Justice Department subpoenaed the Fed regarding his testimony to the Senate Banking Committee. Powell claims the DOJ's actions are politically motivated, reflecting ongoing tensions between him and former President Trump, who has publicly criticized Powell's handling of interest rates.

President Trump proposed a one-year cap on credit card interest rates at 10%, claiming that current rates of 20-30% are unacceptable. However, he lacks the authority to enforce this change without congressional approval. Banks warn that such a cap could harm credit availability for consumers.