By Kanishka Singh

WASHINGTON, Jan 21 (Reuters) – U.S. President Donald Trump said on Wednesday he has had calls from credit-card companies, saying those firms should “give people a break,” as the Republican leader doubled ‌down on a proposal to cap credit-card interest rates.

KEY QUOTE

“I’ve had calls from credit card companies, people that are friends of mine, actually, and I treat them good. I respect them greatly, but they make a lot of money, they got to give people a break,” Trump said in an interview on CNBC on Wednesday. 

Trump did not name any company or executive in particular or share further details about the calls.

WHY IT’S IMPORTANT

Trump, under pressure to address voters’ cost-of-living concerns ahead of this year’s congressional elections, said earlier this month he was calling for a one-year cap on credit card interest rates at 10%, without detailing how he would implement such a step.

Trump made the pledge in his 2024 election campaign as well. He said earlier on Wednesday he was asking the U.S. Congress to approve the move.

CONTEXT

Banking industry bodies have pushed back against the move, arguing it would limit credit access for everyday consumers.

Meanwhile, Wall Street analysts have said such a measure would require legislation and that it would have poor odds of passing, with Democratic and Republican lawmakers divided over supporting it.

There has been some bipartisan interest in addressing high rates. Democratic U.S. Senator Elizabeth Warren said on Wednesday that a law must be passed to get a cap on credit card interest rates while dismissing concerns raised by banking groups.

Trump’s Republican Party currently holds a majority in both the Senate and the House of Representatives.

(Reporting by Kanishka Singh and Jasper Ward in Washington; Editing by Chizu Nomiyama and Matthew Lewis)