Sanders says Trump lied on 10% rate cap as banks profit
Sen. Bernie Sanders accused President Donald Trump of failing to deliver on a promise to cap credit card interest rates at 10%, pointing to $49 billion in quarterly profits by major banks charging 25-30% interest. Sanders called for legislative action against usury as Americans carry $1.25 trillion in credit card debt. Despite the high rates, major banks like JPMorgan Chase & Co and Goldman Sachs reported strong Q2 earnings, beating analyst expectations on robust consumer spending.
*this image is generated using AI for illustrative purposes only.
Sen. Bernie Sanders (I-Vt) stated on Wednesday that President Donald Trump lied about his promise to cap credit card interest rates at 10% while major banks continued to earn significant profits from consumer lending. In a post on X, Sanders highlighted that major banks generated $49 billion in profit during the last quarter, charging interest rates between 25% and 30% even as working Americans struggled to pay their bills. He urged Congress to confront the greed and usury of Wall Street, arguing that banks are profiting from consumers facing high borrowing costs.
Unfulfilled Rate Cap Proposal
Sanders referred to a proposal Trump announced in January to temporarily cap credit card interest rates at 10% for one year, starting on the first anniversary of his second inauguration. The proposal was intended to address consumer affordability, criticizing credit card companies for rates between 20% and 30%. However, no nationwide cap has been implemented to date.
Federal Reserve data indicated that the average interest rate on credit card accounts assessed interest stood at 22.15% in May, more than double the 10% cap Trump proposed. Americans owed approximately $1.25 trillion in credit card debt as of the first quarter of 2026, a slight decrease from the record $1.28 trillion at the end of 2025 but roughly 63% higher than five years prior. A study by the Urban Institute found that growing numbers of Americans are relying on credit cards for groceries, with many unable to pay their balances in full.
Legislative Efforts and Bank Earnings
In February 2025, Sanders and Sen. Josh Hawley (R-Mo.) introduced legislation to cap credit card interest rates at 10% for five years. These proposals have not become law, as banking groups oppose mandatory interest-rate caps, arguing they could restrict access to credit. The recent earnings season underscored the strength of the U.S. banking sector, with major lenders exceeding Wall Street expectations driven by solid consumer spending and robust trading revenue.
JPMorgan Chase & Co CFO Jeremy Barnum noted in an earnings call that consumers and small businesses remain resilient, with consumer spend growth continuing above last year's pace despite volatility in market and gas prices.
Major Bank Q2 Performance
| Bank | Q2 EPS | Expected EPS | Q2 Revenue | Expected Revenue |
|---|---|---|---|---|
| Goldman Sachs | $20.98 | $14.10 | $20.34 billion | $16.05 billion |
| JPMorgan Chase & Co | $6.14 | $5.59 | $50.02 billion | $49.39 billion |
| Citigroup Inc | $3.15 | $2.67 | $24.77 billion | $23.47 billion |
| Wells Fargo & Co | $1.96 | $1.71 | $22.62 billion | $21.80 billion |
| Bank of America Corp | $1.12 | $1.11 | $31.56 billion | $30.32 billion |
What is the likelihood of the Sanders-Hawley legislation gaining bipartisan traction in Congress given the current banking sector profitability?
How might major banks adjust their lending criteria and credit availability if a mandatory interest rate cap were to be implemented?
Could the Federal Reserve's potential future rate cuts provide sufficient relief to consumers without the need for legislative intervention?
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