Bill Ackman did not hold back when voicing his opinion regarding President Donald Trump's proposal for a temporary cap on credit card interest rates. In a now-deleted post on X, the billionaire hedge fund manager expressed strong concerns over Trump's suggestion of a 10% cap on credit card interest rates for one year. Ackman warned that such a move could lead to millions of consumers facing the cancellation of their credit cards.
"This is a mistake, President," Ackman stated. He elaborated that if credit card lenders are restricted from charging rates that are sufficient to cover losses and provide an adequate return on equity, they would be forced to cancel cards for countless consumers. This action could push those affected into the arms of loan sharks, where they would encounter rates that are significantly higher and terms that are far worse than what they previously experienced.
Earlier that same day, Trump took to Truth Social to address the pressing political issue of affordability. He announced his administration's intention to target lenders who impose interest rates ranging from 20% to 30%. "Please be informed that we will no longer let the American public be 'ripped off,'" he declared. Trump proposed that effective January 20, 2026, he would call for a one-year cap on credit card interest rates set at 10%. Implementing such a cap would likely require congressional authorization, and it remains uncertain what actions the President could take to bypass this requirement.
In a follow-up post on Saturday, Ackman, who is the CEO of Pershing Square Capital Management, acknowledged the importance of Trump's goal to reduce credit card interest rates. However, he reiterated his reservations about enforcing a 10% cap. "I have no investments in the credit card space, so I am not the expert," he said. "But the market for credit cards appears highly competitive." He suggested that the most effective way to lower rates would be to enhance competition by creating a regulatory environment that is more favorable to new entrants and innovative technologies.
Trump has recently focused on affordability issues, pledging to take immediate steps to lower prices once in office. This commitment resonates with the recent electoral success of New York City Mayor Zohran Mamdani, who won his position in November by emphasizing concerns related to the cost of living among voters. Business Insider has reached out to the White House for further comment on this developing situation.