“Extortion”: Trump Adopts Sanders’ Language on Rates

Donald Trump has adopted the fiery language of the progressive left, effectively accusing credit card companies of “extortion” with his new 10% interest rate cap. While he didn’t use that exact word in his Truth Social post, his description of Americans being “ripped off” by rates of 20-30% mirrors the rhetoric of Senators Bernie Sanders and Josh Hawley. The two senators had previously introduced a bill labeling high rates as “loan sharking” and “extortion.”
Trump’s announcement, which sets a start date of January 20, is a direct challenge to the financial industry. By framing the issue in moral terms, he is mobilizing public anger against the banks. The move comes as credit card debt hits a record $1.17 trillion, providing a potent backdrop for his populist message.
The banking industry, however, rejects this characterization. In a joint statement, major financial groups argued that interest rates reflect the cost of doing business and managing risk. They warned that capping rates at 10% would force them to restrict credit, hurting the very consumers Trump claims to defend. They positioned themselves as providers of essential financial services, not extortionists.
Senator Elizabeth Warren was unimpressed by Trump’s rhetorical shift. She called the announcement a “joke” and questioned whether he has the legal authority to back up his tough talk. Warren argued that without a law passed by Congress, the banks will simply ignore the president’s social media posts.
Despite the skepticism, the alignment between Trump and figures like Sanders and Hawley is striking. Hawley cheered the move as a “fantastic idea,” suggesting that the political consensus on financial regulation is shifting. As January 20 approaches, the battle over the narrative—extortion vs. economics—is set to intensify.