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WSJ Opinion: Potomac Watch

With Inflation Still at 2.7%, Trump Proposes Fixing Prices on Credit Cards

WSJ Opinion: Potomac Watch

The Wall Street Journal

Society & Culture, News

42.7K Ratings

🗓️ 16 January 2026

⏱️ 27 minutes

🧾️ Download transcript

Summary

Inflation isn't whipped yet, with new figures showing prices up 2.7% year over year, and 3.1% for food. But as Donald Trump seeks answers to "affordability," his latest is a plan to cap credit-card interest rates at 10%, an idea favored by Elizabeth Warren and Bernie Sanders. What economic side effects would this create for consumers? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Millions of Americans use credit cards to purchase goods every day.

0:05.0

The Durbin Marshall credit card mandates put the secure transactions you rely on at risk,

0:10.0

leaving you vulnerable to hackers and foreign cybercriminals that want your data.

0:15.0

Hackers win. You lose.

0:18.0

Guard your card before it's too late.

0:20.0

Tell Congress your data security is not for sale

0:23.5

and oppose the Durbin Marshall credit card mandates. Paid for by Electronic Payments Coalition.

0:32.8

From the opinion pages of the Wall Street Journal, this is Potomac Watch.

0:38.7

New figures this week show inflation still running at 2.7% year over year, far outpacing wage growth.

0:46.4

And while President Trump might now be getting the affordability message, his latest idea is to join Elizabeth Warren and Bernie Sanders in calling for the federal government to cap interest rates on credit cards.

0:59.0

Welcome, I'm Kyle Peterson with the Wall Street Journal.

1:02.5

We're joined today by my colleagues on the WSJ's editorial pages, columnists Kim Strassel and Alicia Finley.

1:10.9

Inflation is still not whipped.

1:13.0

That's the message of a pair of reports out of the Labor Department on Tuesday,

1:17.3

the first being the Consumer Price Index from the Bureau of Labor Statistics.

1:22.7

The headline figure showing prices up 2.7% year over year,

1:31.1

still stuck well above the Fed's target of 2%, despite President Trump's periodic barrages toward Chair J. Powell to lower interest rates.

1:38.2

Alicia, you've looked at this inflation report. What do you take away from it?

1:42.6

Well, as you say, inflation still isn't whipped

1:45.3

at 2.7%. Inflation really isn't increasing per se. Prices are increasing, but the inflation isn't

1:53.1

increasing or the rate of change and then price increases. But it also isn't falling. It's

1:57.8

essentially been flat over the last 12 or so months. Now, I think the problem

...

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