'President, this is an error': Bill Ackman reacts to Trump's proposal for a 10% annual limit on credit card interest rates

Bill Ackman Criticizes Trump's Proposal for Credit Card Interest Rate Cap

• Billionaire investor Bill Ackman described former President Donald Trump's suggestion to limit credit card interest rates for a year as misguided.
• Ackman warned that imposing such a cap could result in millions of credit cards being revoked.
• Trump recently advocated for a temporary 10% ceiling on credit card interest rates.

Bill Ackman did not hold back when sharing his thoughts on Donald Trump's plan to temporarily restrict credit card interest rates.

In a post on X that was later removed, the hedge fund manager argued that Trump's proposal for a one-year 10% cap was a misstep, cautioning that it could prompt lenders to cancel cards for millions of users.

"This is a mistake, President," Ackman commented. "If lenders can't set rates high enough to offset losses and earn a reasonable return, they may revoke cards for millions, forcing people to seek out high-interest loans from less reputable sources."

Trump addressed the issue of affordability on Truth Social, promising to crack down on lenders charging interest rates between 20% and 30%.

"We will no longer allow the American people to be taken advantage of," Trump declared. "Starting January 20, 2026, I will implement a one-year 10% cap on credit card interest rates as President."

Implementing such a measure would likely require congressional approval, and it remains uncertain how the president could enact it unilaterally.

In a follow-up post on Saturday, Ackman, who leads Pershing Square Capital Management, acknowledged that Trump's intention to lower credit card rates was important, but reiterated his reservations about a strict 10% limit.

"While I don't have direct investments in credit card companies and am not an industry expert, the sector seems highly competitive," Ackman wrote. "Encouraging more competition through regulatory reform and innovation would be a more effective way to reduce rates."

Trump, who has promised to "immediately bring prices down" if re-elected, has recently focused on affordability issues.

In New York City, Zohran Mamdani won the mayoral race in November after centering his campaign on the rising cost of living.

Business Insider has reached out to the White House for a response.