Why Credit Card Companies Are Terrified Now

Why Credit Card Companies Are Terrified Now

In recent remarks as Director of the National Economic Council, Kevin Hassett characterized the American consumer as "firing on all cylinders," noting that spending levels remain exceptionally high. While the query suggests he was "boasting," Hassett's comments specifically highlighted the high volume of spending across multiple sectors: Credit Card Usage: He stated that "credit card spending is through the roof," suggesting that consumers are leveraging credit to maintain their current lifestyles.Sector Spending: He pointed out that while costs for necessities like gasoline have increased, consumers are also "spending more on everything else too".Policy Response: Amid these spending trends, the Trump administration has proposed a 10% cap on credit card interest rates to address affordability. Hassett has also suggested that banks might voluntarily offer new "Trump cards" with lower rates to help underserved Americans. Current Economic Leadership (May 2026)As of early May 2026, the administration's top economic advisors include: Christopher Phelan: Recently nominated to lead the White House Council of Economic Advisers (CEA) following the transition of former chair Stephen Miran to the Federal Reserve.