Sen. Bernie Sanders (I-Vt.) didn't mince words on Wednesday. He said President Donald Trump lied about his promise to cap credit card interest rates at 10%, while big banks keep pocketing billions from consumers paying 25% to 30% interest.
In a post on X, Sanders pointed out that major banks made $49 billion in profit last quarter alone, even as working Americans struggle to pay their bills. He called on Congress to “take on the outrageous greed and usury of Wall Street.”
Trump announced the 10% cap proposal back in January, saying it would apply for one year starting on the first anniversary of his second inauguration. He criticized credit card companies for charging rates of 20% to 30% or more. But so far, no nationwide cap has been put in place.
Americans owed about $1.25 trillion in credit card debt as of the first quarter of 2026, according to the data. That's down slightly from the record $1.28 trillion at the end of 2025, but still roughly 63% higher than five years earlier. A study by the Urban Institute found that more and more people are using credit cards to buy groceries, and many can't pay off their balances in full.
Federal Reserve data shows the average interest rate on credit card accounts that are assessed interest was 22.15% in May — more than double the 10% cap Trump proposed.
Sanders hasn't just been criticizing from the sidelines. In February 2025, he and Sen. Josh Hawley (R-Mo.) introduced legislation that would cap credit card interest rates at 10% for five years. But the bill hasn't become law, and banking groups have pushed back hard, arguing that mandatory rate caps could restrict access to credit.
The latest earnings season shows just how strong the banking sector is. Major lenders beat Wall Street expectations, thanks to solid consumer spending and robust trading revenue. JPMorgan Chase & Co. (JPMorgan Chase & Co. (JPM)) CFO Jeremy Barnum said in the company's earnings call: “Notwithstanding the recent volatility in market and gas prices, based on our data, consumers and small businesses remain resilient, with consumer spend growth continuing above last year's pace.”
Here's how the big banks performed in Q2:
Market data indicates JPM has a Momentum score in the 65th percentile and a Growth score in the 35th percentile.
So the debate boils down to this: Trump promised a 10% cap, but rates are still above 22%. Sanders and Hawley have a bill that would do something similar, but it's stuck. Meanwhile, banks are posting huge profits. For consumers carrying credit card debt, the status quo isn't exactly friendly.
