Hassett Urges Voluntary 'Trump Cards' to Boost Credit Access

Overview

Kevin Hassett, director of the National Economic Council, said on Oct. 24, 2025 in Washington, DC that large U.S. banks could voluntarily extend credit-card access to underserved consumers as an alternative to a broad statutory interest-rate cap. The comments follow President Donald Trump's public call for banks to cap credit-card interest rates at 10% by Jan. 20.

Hassett framed a voluntary-bank program as a narrower, targeted approach aimed at consumers who "have enough income and stability in their lives so they're worthy of credit" but lack existing credit access. He said, "Our expectation is that it won't necessarily require legislation, because there will be really great new 'Trump cards' presented for folks that are voluntarily provided by the banks." He also noted engagement with bank CEOs, stating that "CEOs of many of the big banks who think that the president's onto something."

Key, quotable points

• "They could potentially voluntarily provide for people who are in that sort of sweet spot of not having financial leverage very much because they don't have access to credit, but they have enough income and stability in their lives so they're worthy of credit." (Kevin Hassett)
• "Our expectation is that it won't necessarily require legislation, because there will be really great new 'Trump cards' presented for folks that are voluntarily provided by the banks." (Kevin Hassett)
• President Trump's proposed 10% cap on credit-card interest rates and the Jan. 20 target date remain central context for the administration's engagement with lenders.

What Hassett proposed (practical framing)

• Targeted voluntary programs: Focus on consumers with documented income and stability but limited credit history.
• No immediate legislative push: The administration signaled a preference for bank-led voluntary initiatives rather than a sweeping statutory rate cap that would require Congress.
• Use of incentives: Voluntary participation implies potential incentives or reputational rewards for participating banks rather than punitive legal measures.

These elements make the proposal more operationally achievable in the short term than a mandatory interest-rate ceiling.

Bank responses and market signals

• Public feedback from bank executives this week has signaled resistance to a 10% caps for all cardholders; some banks have indicated the opposite response: reducing or closing accounts for customers judged to be high-cost to serve.
• Commentators in the banking sector have pointed to the commercial challenge of offering broad 10% APR cards while maintaining profitability on high-risk credit portfolios.

The contrast between voluntary, targeted credit expansion and a universal 10% cap drives the immediate policy debate.

Potential implications for consumers and the economy

• Consumers in the "sweet spot": If banks adopt targeted programs, certain previously underserved households could gain access to low- to mid-cost credit without a system-wide rate shock.
• Credit repricing and account closures: A hard 10% cap could prompt lenders to exit higher-risk segments, raising the probability of account closures and tighter underwriting; a voluntary approach may reduce that risk.
• Consumer spending and macro effects: Broad, abrupt changes to credit availability or pricing can affect consumer spending patterns; a targeted voluntary approach aims to expand access while limiting broader disruptions.

Regulatory and legal considerations

• Legislative requirements: A universal statutory cap on APRs would likely require new federal legislation and could face legal and operational challenges for banks and card networks.
• Consumer-protection trade-offs: Policymakers must weigh lower headline rates against credit availability, underwriting standards, and potential market exit by lenders.

What institutional investors and analysts should watch

• Corporate disclosures: Monitor quarterly earnings calls and filings for large U.S. credit-card issuers for language on account closures, credit loss assumptions, and strategy for underserved segments.
• Policy signals: Watch White House statements and meetings between administration officials and bank executives for indications of voluntary program design or incentive structures.
• Consumer credit metrics: Track changes in credit-card account counts, average APRs for new accounts, charge-off rates, and origination standards; meaningful shifts could signal either voluntary expansion or retrenchment.

Strategic takeaways for market participants

• Banks: A voluntary program focused on "credit-worthy but credit-invisible" consumers could represent a measured growth opportunity if underwriting and pricing are properly calibrated.
• Investors: Assess issuer-level exposure to repricing risk and the potential earnings impact from expanded low-rate portfolios versus the risk of account attrition under a hard cap.
• Policymakers: Voluntary initiatives can be faster to implement but depend on bank participation; legislative approaches offer uniformity but carry higher political and market costs.

Conclusion

Hassett's remarks shift the debate toward a pragmatic, targeted strategy that seeks to expand credit access without the immediate disruption a universal 10% APR cap could cause. For traders and analysts, the critical questions are whether banks will design credible voluntary programs, how participation affects issuer economics, and how consumer-credit metrics respond in the coming quarters. Monitoring issuer disclosures, administration–bank engagement, and consumer credit trends will be essential for anticipating market impact.