Billionaire hedge fund manager Bill Ackman recently parted ways with former President Donald Trump over a proposed policy that he believes could have adverse consequences for American consumers. Trump suggested implementing a one-year cap on credit card interest rates at 10 percent, a plan Ackman argues could severely limit access to credit for millions.
In a post on X, which has since been deleted, Ackman expressed concern that such a cap would prevent lenders from adequately pricing risk. He warned that credit card companies would likely respond by canceling cards for many consumers, especially those with weaker credit histories. This could drive people towards more expensive and risk-prone financial alternatives.
“This is a mistake, President,” Ackman cautioned last Friday. He emphasized that without the ability to charge rates that cover potential losses and provide a reasonable return on equity, lenders would be compelled to revoke credit cards for countless individuals, pushing them towards loan sharks who offer far worse terms.
Ackman’s remarks followed Trump’s announcement on Truth Social that his administration aims to impose this interest rate cap starting January 20, 2026. Trump described the measure as a strategic effort to increase affordability and curb lenders imposing interest rates as high as 20 to 30 percent.
Ackman’s comments came hours after Trump announced on Truth Social that his administration would seek to cap credit card interest rates at 10 percent for one year beginning January 20, 2026.
Trump framed the move as part of a broader effort to address affordability and rein in lenders charging rates of ’20 to 30%.’
Ackman’s criticism came only hours after Trump unveiled the idea on Truth Social, framing it as a populist strike against what he described as abusive lending practices in an economy still grappling with high household debt.
‘Please be informed that we will no longer let the American Public be ‘ripped off,’ Trump wrote.
Billionaire hedge fund boss Bill Ackman publicly blasted President Donald Trump’s proposed 10% credit card interest cap as a ‘mistake’
‘This is a mistake President,’ Ackman wrote in a blunt X post that was later deleted
In a follow-up tweet, Ackman said Trump’s goal of lowering rates was ‘worthy and important,’ but the 10% cap would inevitably shrink access to credit
‘Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%.’
Trump said the move was aimed squarely at lenders charging interest rates in the ’20 to 30%’ range – a figure common for many credit cards, particularly for borrowers with weaker credit profiles.
Any nationwide cap on interest rates would almost certainly require congressional approval, and it remains unclear what legal pathway the White House could use to impose such a restriction.
By Saturday morning, Ackman, the CEO of Pershing Square Capital Management, had reposted his argument in a longer statement, softening his tone toward Trump personally while doubling down on the substance of his warning.
‘I think President @realDonaldTrump’s goal of reducing credit card interest rates is a worthy and important one,’ Ackman wrote.
‘My concern about capping rates at 10% is that doing so will inevitably cause millions of Americans to have their cards cancelled as credit card companies lose the ability to adequately price subprime credit risk.’
He warned that borrowers shut out of the credit card market would not simply stop borrowing – they would seek out far riskier forms of credit.
‘Consumers denied credit cards will be forced to turn to loan sharks whose rates and terms will be vastly worse for borrowers,’ Ackman wrote.
Ackman stressed he has no investments in the credit card industry, calling the market ‘highly competitive’
Ackman cautioned that borrowers denied cards would be pushed toward payday lenders and loan sharks with far worse rates and terms
‘While 20% or more is a high rate, loan sharks can charge multiples of these rates, and the cost of default can be physical harm or worse.’
Ackman stressed that he does not have a financial stake in the credit card industry.
‘I have no investments in the credit card space so I am not the expert, but the market for credit cards appears highly competitive,’ he wrote, arguing that regulatory reform, rather than price caps, would be the most effective way to drive rates down.
‘The best way to bring down rates would be to make it more competitive by making the regulatory regime more conducive to new entrants and new technologies.’
He concluded by praising Trump’s broader economic focus.
‘I commend the President for his focus on affordability for all Americans. Mortgage spreads and rates are coming down significantly due it his actions. Finding a way to bring down credit card rates without taking credit away from many Americans would have a very positive impact on the most disadvantaged Americans.’
Less than half an hour later, Ackman launched a new line of attack – this time questioning the fairness of credit card rewards programs themselves.
‘It seems unfair that the points programs that are provided to the high income cardholders are paid for by the low-income cardholders that don’t get points or other reward programs with their cards,’ he wrote.
Ackman explained that premium rewards cards carry higher ‘discount fees’ – the charges imposed on merchants – which are ultimately baked into prices paid by all consumers.
‘Discount fees can be as low as ~1.5% for cards without rewards but as high as 3.5% or more for ‘black’ or ‘platinum’ cards,’ he wrote.
Since the retailers or service establishments charge all consumers the same price for the same items or services, the millions of lower income consumers with no reward benefits are in effect subsidizing the platinum cardholder.’
‘This doesn’t seem right to me,’ he added. ‘What am I missing?’
Ackman argued regulatory reform rather than price controls would be the best way to bring down borrowing cost
Nearly half of US credit cardholders carry a balance, and the average balance stood at $6,730 in 2024
Financial policy experts largely reinforced Ackman’s concerns, cautioning that a hard cap could reduce access to credit and distort the market.
Gary Leff, chief financial officer for a university research center and a longtime credit-card industry blogger, said a 10 percent cap would likely do more harm than good.
‘I will not speak for Ackman,’ Leff said to the Daily Mail, ‘however capping credit card interest will make credit card lending less accessible.
‘That’s bad for the economy because cards are an efficient way to facilitate payments. And that’s bad for consumers because those who borrow on their cards do it because it’s their best option for borrowing – take it away and you push them to costlier options like payday lending.’
Leff added that the industry is already fiercely competitive. ‘If all consumers could profitably be offered unsecured credit at 10% someone would already do it and win huge business!’
Nicholas Anthony, a policy analyst at the Cato Institute, was even more blunt.
‘Price controls are a failed policy experiment that should be left in the past,’ Anthony said in a statement to the Daily Mail.
‘President Trump recognized this fact on the campaign trail when he said, ‘Price controls [have] never worked.’ Trump should heed his own warning.’
‘It may seem like free money,’ Anthony added, ‘but history has shown that these controls result in shortages, black markets, and suffering. In any event, consumers lose.’
Both the White House and Ackman have been contacted for further comment.
