Credit card cap could cut off millions, risk recession

(The Center Square) – A proposed federal cap on credit card interest rates could drastically reduce Americans' access to credit and hurt the U.S. economy, a new report warns. Unleash Prosperity, a nonprofit that promotes pro-business policies, released the report analyzing a plan to cap credit card interest rates at 10% for five years. The group argues the policy would act as a price control and lead to a major reduction in lending. The report estimates that at least 64 million Americans could lose access to credit cards or face higher costs under the cap. It also projects up to $714 billion in lost economic output tied to reduced consumer spending. “Credit cards are a central pillar of the American economy, helping families manage expenses and businesses grow,” Steve Moore, co-founder of Unleash Prosperity, told The Center Square. “Imposing a 10% cap would pull tens of millions of Americans out of the credit system, reduce spending, and