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FIRST ON FOX: Former Trump economic advisor and Unleash Prosperity’s Steve Moore has sounded the alarm over a plan by senators Josh Hawley and Bernie Sanders to cap credit card interest rates at 10%.
Moore argues that while their proposal may be politically popular, it could hurt millions of Americans and suggested that President Trump may also not support the measure.
“Trump has a bit of an economically populist streak,” Moore told FOX Business. “I don’t know his position on this, but I could see him potentially saying this is not fair to low-income people.”
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According to Moore, affordability remains a top concern for electoral voters now.
“Affordability is and has been issue No. 1 in elections, and I’d say that probably was the issue that drove a big win for the Democrats on Tuesday,” he added.
In his new report, Why Interest Rate Caps Are Harmful to Consumers, Moore’s watchdog group highlights the growing crisis of household credit card debt and warns that limiting interest rates could backfire.
He argues that such credit card laws would deny millions of lower-income Americans access to credit, while leading banks to cut rewards programs, raise fees and tighten eligibility.
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“There’s a lot of talk in Congress about cutting consumer costs by reducing credit card fees and interest rates, and when they’ve tried to do that with debit cards, it has not worked,” Moore confirmed.
“This would deny people with lower credit ratings access to credit and debit cards.”
Moore’s report notes that 82% of U.S. households now have at least one credit card, up from 45% in 1980, showing how access to credit has become a central part of American life.
With more than 500 million credit cards in circulation, Moore warns that the proposed cap could undo decades of progress.
“Now 83% of Americans have at least one credit card, and most have two or three. That’s been a good thing for low-income people,” he explained.
“But a lot of them are going to lose access to credit cards and points and other rewards.”
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Moore further cautioned that the plan would disproportionately harm those with lower credit scores.
“People of lower incomes generally, not always, but generally have lower credit scores, so they’re at higher credit risk. It’ll save money for some, yes, but it will deny low-income people credit and that’s not doing them a favor,” he said.
Moore also urged Americans to be more cautious with debt.
“This is a problem with financial literacy,” he said. “People should know there are better ways to borrow than maxing out credit cards.
“It is a big problem in America that people are racking up a lot of credit. So, one of the things we need is financial literacy in this country and for people to know not to do that.”
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In his report, Moore also draws parallels to past regulatory failures, such as Illinois’ 36% loan cap, warning that new restrictions could “revive loan-sharking” by driving desperate borrowers toward predatory lenders.
“The system isn’t broken,” Moore said. “But rules that make cards less profitable and more vulnerable to losses threaten a well-functioning and economically vital market.”
