Kevin Hassett, a key economic advisor, recently shared that major U.S. banks might start offering credit cards to those who struggle to access credit. This idea aligns with President Trump’s goal of improving affordability for everyday Americans.
Last week, Trump suggested capping credit card interest rates at 10%. This proposal faced heavy resistance from banking leaders. Instead, Hassett introduced a more targeted approach. He believes banks could offer credit cards to consumers who earn a steady income but lack credit access.
Hassett explained, “They are in a good spot financially but just don’t have credit yet.” He thinks banks might roll out these new cards voluntarily, avoiding the need for legislation. This could be a shift from more drastic changes that may hurt consumer spending and the economy.
Interestingly, discussions among bankers revealed a different perspective. Rather than lowering interest rates to Trump’s proposed 10%, banks hinted they might limit customer accounts instead. Hassett’s comments came in response to inquiries about whether banks would be compelled to comply with the president’s ideas.
The administration has been reaching out to CEOs of larger banks, hoping they see the potential benefits of these ideas. However, some major credit card issuers have not yet discussed the proposed “Trump cards” with the White House, according to a bank lobbyist.
In terms of recent trends, a survey from the Consumer Financial Protection Bureau (CFPB) found that nearly 50% of Americans have low or no credit scores. This shows that many may benefit from better access to credit options. If banks can offer these cards as Hassett suggests, it could open doors for millions of Americans.
Overall, while the concept of affordable credit is gaining traction, the future remains uncertain. With banks’ initial reactions showing hesitation, it will be interesting to see how this situation unfolds. For now, it’s clear that discussions around credit access continue to be a prominent topic within the financial landscape.
For more insights, you can read the latest findings from the Consumer Financial Protection Bureau.
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