(DDM) – Former United States President Donald Trump has ignited a fierce economic and political confrontation by proposing sweeping changes to America’s credit card system and monetary policy, moves that have unsettled Wall Street, alarmed major banks, and rattled global investors.
DDM gathered that Trump’s call for a one-year cap on credit card interest rates has triggered strong resistance from leading U.S. banks, which argue that such intervention threatens financial stability and undermines market-driven credit systems.
Trump framed the proposal as a consumer-protection measure, insisting that Americans suffer under excessive interest rates imposed by powerful financial institutions.
Major banks, however, warned that enforcing an interest rate cap could disrupt lending models, restrict access to credit, and weaken confidence in the broader financial sector.
Financial analysts disclosed that nearly 70 billion dollars in U.S. credit card bonds now face heightened risk as markets reassess the viability of returns under a regulated interest environment.
Wall Street traders reacted nervously, as investors priced in uncertainty surrounding the future of consumer credit and bank profitability.
Beyond credit cards, Trump has escalated tensions with the U.S. Federal Reserve, intensifying pressure on the institution to cut interest rates aggressively.
Trump openly criticized Federal Reserve Chair Jerome Powell, accusing him of mismanaging monetary policy and resisting economic growth.
The standoff deepened after reports emerged of a criminal probe involving Powell, a development that sent shockwaves across financial markets.
Market observers said the investigation, regardless of outcome, has damaged the perception of independence that underpins the credibility of the Federal Reserve.
In response, the U.S. dollar weakened against major global currencies, reflecting growing investor unease about policy consistency and institutional stability.
Currency analysts explained that confidence in the dollar relies heavily on predictable monetary governance and trust in the Federal Reserve’s autonomy.
Equity markets, valued at over 60 trillion dollars, also showed signs of strain as investors reassessed long-term risks tied to Trump’s economic agenda.
Critics argued that Trump’s confrontational approach toward banks and the central bank amounts to an economic experiment with potentially global repercussions.
They warned that sudden regulatory shifts in the world’s largest economy could ripple through international markets, affecting interest rates, capital flows, and investor sentiment worldwide.
Supporters of Trump countered that entrenched financial elites have long resisted reforms that could ease the burden on ordinary Americans.
They insisted that challenging banks and central bankers reflects a necessary correction to an unfair system skewed toward corporate interests.
Historically, U.S. presidents have avoided direct interference in credit markets and central bank operations to preserve financial stability and global confidence.
Economists noted that Trump’s willingness to break with convention has amplified uncertainty at a time when global markets already face geopolitical and economic pressures.
International investors continue monitoring developments closely, aware that shifts in U.S. financial policy often shape global economic trends.
As debates intensify, analysts say Trump’s clash with banks and the Federal Reserve may redefine the balance between political power, financial institutions, and market autonomy in the United States.
They cautioned that the final outcome will influence not only American consumers and investors, but also economies far beyond U.S. borders.