NEW YORK, NEW YORK – DECEMBER 04: Bill Ackman, CEO and portfolio manager at Pershing Square Capital Management, attends the New York Times annual DealBook summit at Jazz at Lincoln Center on December 04, 2024 in New York City. The NYT summit with Andrew Ross Sorkin returns with interviews on the main stage including Sam Altman, co-founder and C.E.O. of OpenAI, Jeff Bezos, founder and executive chairman of Amazon and owner of the Washington Post, former U.S. President Bill Clinton and Prince Harry, The Duke of Sussex, among others. The discussions will touch on topics such as business, politics and culture. (Photo by Michael M. Santiago/Getty Images)
Billionaire investor Bill Ackman has publicly reacted to President Donald Trump’s call for a temporary cap on credit card interest rates, warning of unintended consequences for borrowers. In a post on X, Ackman stated, “This Is a Mistake”, addressing the proposal that would limit credit card interest rates to 10% for one year starting in January 2026.
This is a mistake President @realDonaldTrump.
Without being able to charge rates adequate enough to cover losses and to earn an adequate return on equity, credit card lenders will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates… https://t.co/d0yvkGzSZ4
— Bill Ackman (@BillAckman) January 10, 2026
The remark places Ackman among critics of the plan, even as the proposal gains attention for its potential impact on household debt and borrowing costs.
President Trump announced the idea on Truth Social, framing it as a response to what he described as excessively high interest rates charged by credit card companies.
Under the proposal, interest rates would be capped at 10%, significantly lower than current averages, which exceed 20% based on Federal Reserve data.
The administration has not clarified whether the cap would be enforced through executive action or serve as pressure on issuers to voluntarily reduce rates.
CBS News has contacted the White House and major card issuers for comment.
The proposal has drawn rare bipartisan interest. Lawmakers including Sen. Josh Hawley and Sen. Bernie Sanders have previously introduced legislation supporting a 10% cap, while a similar House bill was sponsored by Rep. Alexandria Ocasio-Cortez and Rep. Anna Paulina Luna. Supporters argue the measure could provide relief to Americans managing high-interest debt, particularly as total U.S. credit card balances reached $1.23 trillion in the third quarter of last year, according to the Federal Reserve Bank of New York.
Bill Ackman and financial industry groups raise concerns over credit availability
Critics, however, warn of reduced access to credit. Scott Simpson, CEO of America’s Credit Unions, said in a statement that a strict cap could make credit “unattainable for millions of working Americans.”
Industry groups, including the Electronic Payments Coalition, have echoed concerns that a uniform cap could limit consumer choice and availability of credit products.
Bill Ackman’s criticism focused on lender economics and borrower outcomes. He wrote:
“Without being able to charge rates adequate enough to cover losses and to earn an adequate return on equity, credit card lenders will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates higher than and on terms inferior to what they previously paid.”
Banking trade groups have made similar arguments in the past. The American Bankers Association previously cited internal analysis suggesting that the majority of subprime borrowers could lose access to credit cards under lower rate caps, potentially pushing consumers toward alternative lending options such as payday loans or pawn shops.
The interest rate cap proposal is part of a broader effort by President Trump to address affordability and borrowing costs.
Recent actions include directing federal entities to purchase mortgage-backed securities and urging the Federal Reserve to reduce benchmark interest rates.
The president is also expected to nominate a new Federal Reserve chair, signaling continued focus on monetary policy and credit conditions.
As debate continues, the proposal remains a focal point in discussions around consumer debt, credit access, and financial regulation.