Ackman’s Warning Ignored: Trump Pushes Ahead with “Mistake”

Donald Trump is plowing ahead with his 10% credit card rate cap, pointedly ignoring the dire warnings of his own billionaire backer, Bill Ackman. Ackman publicly labeled the move a “mistake” (before deleting the tweet) and warned of a catastrophic credit crunch. Trump’s refusal to heed this advice signals a dramatic break with the financial elite: he is choosing his populist base over his billionaire donors.
Ackman’s warning was specific and chilling. He predicted that a 10% cap would force banks to cancel millions of credit cards, effectively exiling subprime borrowers from the economy. By ignoring this expert analysis, Trump is taking a massive gamble that the market will adjust, or that he can bully the banks into compliance.
The banking industry is amplifying Ackman’s warning. In a joint statement, major financial associations screamed that the policy would be “devastating.” They are incredulous that a pro-business president would endorse a policy that so flagrantly violates market principles. They are watching in horror as Trump drives the economy toward what they see as a cliff.
Senator Elizabeth Warren, usually on the opposite side of Ackman, found herself in agreement with the billionaire’s logic. She called the announcement a “joke” and a “fraud,” arguing that Trump’s arrogance is leading him into a trap. She noted the irony of Trump ignoring his own donors to pursue a policy he likely can’t enforce.
Senator Josh Hawley, however, is cheering the defiance. By rejecting Ackman’s warning, Trump proves he is beholden to no one. As January 20 nears, the question is whether Ackman was a prophet of doom or just another out-of-touch billionaire.