Donald Trump is flexing his executive muscle like never before, testing the limits of presidential power with a decree to cap credit card interest rates at 10%. The announcement, made on Truth Social with a January 20 start date, bypasses Congress entirely. Trump is effectively ruling by fiat, declaring that the “ripping off” of the public ends on his command, regardless of what the law or the markets say.
This aggressive display of power raises a fundamental question: is he acting as a dictator interfering in private contracts, or a savior protecting the vulnerable? Trump clearly sees himself as the latter, using his authority to crush the predatory practices of the banking elite. He is betting that the American people care more about lower bills than they do about constitutional niceties.
The banking industry views the move as tyrannical. Major financial associations issued a statement warning that such unilateral action destroys the predictability of the rule of law. They argued that if a president can simply dictate prices, no business is safe. The industry is preparing to fight this executive overreach with every lawyer they can hire.
Senator Elizabeth Warren, usually a critic of executive overreach, found herself in the awkward position of defending the process. She called the announcement a “joke” precisely because it ignores the legislative branch. Warren argued that Trump is posing as a strongman but will be revealed as powerless when the courts strike down his decree.
Senator Josh Hawley, however, loves the flex. He called the move a “fantastic idea,” embracing the use of executive power to achieve populist ends. As January 20 approaches, Trump’s rate cap is shaping up to be a defining test of how much power a president actually holds.