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Columbia Business School Professor Brett House spoke with Fortune reporter Sheryl Estrada about former President Donald Trump’s proposal to cap credit card interest rates at 10%. House warned that while the policy is intended to protect consumers, it is likely to backfire by reducing credit availability, particularly for higher-risk borrowers. He explained that banks may respond by tightening lending standards, cutting rewards programs, or introducing new fees—potentially leaving many consumers worse off. House emphasized that interest rate caps often create unintended consequences that distort credit markets rather than improve affordability.
