Sen. Elizabeth Warren (D-Mass.) expressed concerns on Monday over increased credit card spending, saying Americans are paying higher interest rates under the President Donald Trump administration.
Warren Targets Trump Over Credit Card Interest Rates
In an X post, Warren said Trump’s advisors are celebrating a surge in credit card spending, but Americans are feeling the pain of higher borrowing costs. She wrote, “Americans have paid over $150 billion extra because Trump failed to keep his promise to cap credit card interest rates at 10%.”
She pointed out that families are being charged an extra $368 million in interest “every day Trump fails to deliver.”
Consumer Spending Surges
Warren’s comments came in response to remarks highlighted by The Hill from a Trump economic adviser, Kevin Hassett, who said, “credit card spending is through the roof” as households are spending more on gasoline and other items.
Sen. Bernie Sanders (I-Vt.) recently said, “Americans are forced to put more of their spending on credit cards because of outrageously high prices.” That’s a win for big banks charging 30% interest rates. It’s a disaster for working people.”
U.S. consumer spending surged by 1.7% in March, marking the largest monthly gain since January 2023. This was largely driven by a 15.5% increase in sales at gasoline stations, suggesting that even amid rising costs, consumers are continuing to spend, defying expectations of a slowdown in economic activity.
Gasoline prices have surged about 61% since December, as oil prices have been spiking since the Iran war began. According to The Kobeissi Letter, Americans will spend roughly $90 billion more on gasoline in a year than they would at $3 per gallon.
AAA data shows gasoline prices are trending at $4.52 per gallon.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
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