Heritage Foundation Chief Economist E.J. Antoni warned Saturday that President Donald Trump’s call to cap credit card interest rates at 10% could backfire on the very consumers it’s meant to help.
Appearing on Newsmax’s “Wake Up America Weekend,” Antoni argued that a government-imposed cap would likely lead to banks tightening credit standards and cutting off riskier borrowers.
Antoni said limiting interest rates would reduce lenders’ willingness to extend credit, especially to lower-income Americans or those with weaker credit histories.
“It's not that you would get more people involved — you'd get much less,” Antoni said. “In other words, as you reduce those interest rates, the banks are going to be much more careful in terms of who they're lending to.”
He emphasized that the consumers most vulnerable to credit card debt could be the first to be shut out of the market altogether.
“And so, the folks who are likely to fall deeply into credit card debt are going to be exactly the ones who would be prohibited from getting a credit card in the first place,” Antoni said.
Antoni also addressed what could happen to existing cardholders if lenders face tighter profit margins under a cap.
When asked if credit card companies could withdraw credit lines from those who already have a card, he said, “Oh, sure. Absolutely.”
Antoni noted that banks could rein in spending access even without formally canceling a card.
“There's no reason why they can't reduce … your credit limit, how much you can spend,” he said.
He added that lenders could sharply limit accounts — or close them outright — if they decide certain customers no longer fit their new risk standards.
“They can effectively reduce that to zero and close the account,” Antoni said.
Trump’s proposed 10% cap has drawn attention as Americans continue to grapple with high borrowing costs and affordability in everyday life, but Antoni said the policy could ultimately mean fewer credit cards, smaller credit lines and less financial flexibility for those already on the margin.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
© 2026 Newsmax. All rights reserved.