Rate‑cap risk to consumer credit

When an executive calls for an extreme, short‑timeline cap on consumer interest rates (e.g., 10% on credit cards), banks warn they must shrink or exit lending lines, which can cause rapid credit contraction, market volatility, and unintended regressivity for households who rely on unsecured credit. Markets react immediately (stock drops) and the stated average card APR (~21%) implies a large wedge between current pricing and the proposed cap. — A presidential push to cap rates without congressional lawmaking can destabilize credit markets, reduce access for vulnerable borrowers, and create downstream shocks to consumption and small‑business liquidity.