Would Trump's proposed 10% cap on credit card rates actually work?

President Donald Trump is once again trying to get banks to cap the interest rates they charge on credit cards. He acknowledged this week that he needs help from Congress to do so.

He devoted part of his speech on Wednesday at the World Economic Forum in Davos, Switzerland, to the subject. At another Davos venue, the CEO of the biggest bank, Jamie Dimon of JPMorgan Chase, said such a cap could cause "economic disaster."

Earlier this month, in a social media post on Truth Social, President Trump ordered banks to limit credit card interest rates to 10%. The cap was supposed to go into effect two days ago. Trump told reporters that companies that didn’t comply would be in violation of the law, but there was no law limiting rates.

On Wednesday, the president called on Congress to pass legislation capping credit card rates at 10% for a year.

“And this will help millions of Americans save for a home,” he said. “They have no idea they’re paying 28%. They go out — they’re a little late on their payment, and they end up losing their house.”

But the credit card cap doesn’t appear to have enough support in Congress to become law. And banks are not thrilled with this idea. They say the lower rates would mean higher-risk borrowers wouldn’t be able to get credit cards.