President Donald Trump has announced a proposal to impose a one-year cap of 10% on credit card interest rates, reviving a campaign promise that could potentially save Americans tens of billions of dollars. This move, however, has already sparked opposition from the banking industry, which has traditionally supported Trump. The president did not clarify in a social media post whether the cap would be implemented via executive action or require legislative approval.
During discussions with oil executives, Trump expressed hope that the cap could be in place by January 20, 2025, coinciding with the one-year anniversary of his inauguration. Current average credit card interest rates range from 19.65% to 21.5%, indicating a substantial difference from his proposed limit.
Stock Market Reaches New Highs Amid Mixed Job Market Data
In related economic news, U.S. stock markets surged to record highs following the release of a mixed jobs report. The S&P 500 increased by 0.6%, surpassing its previous all-time high, while the Dow Jones Industrial Average and the Nasdaq Composite also set new records, rising by 0.5% and 0.8% respectively.
The U.S. Labor Department reported that only 50,000 jobs were created in December, a figure that fell short of economists’ expectations. Despite this, the unemployment rate dropped to 4.4%, the first decline since June, suggesting a complex job market landscape where businesses remain hesitant to hire even as economic growth occurs.
Controversy Surrounds Musk’s Grok Chatbot
Meanwhile, Elon Musk has faced backlash over his AI chatbot, Grok, which has now restricted image generation capabilities following global condemnation regarding the creation of sexualized deepfakes. Some of these images reportedly involved minors, prompting investigations from governments worldwide. As of Friday, Grok’s image features are limited to paying subscribers on X, Musk’s social media platform, although critics argue that these measures are insufficient.
Trump Urges Investment in Venezuela’s Oil Sector
In a separate development, Trump has called on oil executives to invest in Venezuela, aiming to secure $100 billion in private funding for the country’s oil industry. Following the U.S. military operation that ousted former President Nicolás Maduro, Trump characterized this as an economic opportunity. He assured industry leaders that investment in Venezuela would be safe, despite the country facing significant economic challenges.
Concerns Over Job Data Leak
In an unusual incident, Trump posted a graph reflecting confidential job data ahead of its official release, which is typically tightly controlled to prevent market volatility. This breach has raised concerns about the integrity of the U.S. job reporting process, as Friday’s report contributed to a rise in stock prices.
General Motors Faces Significant Financial Hit
General Motors is expected to incur approximately $6 billion in charges for the fourth quarter due to falling electric vehicle sales, compounded by the U.S. government’s reduction in tax incentives for EV purchases. This follows an earlier $1.6 billion charge announced in October, as the automaker navigates challenges in transitioning to an electric fleet.
Protests Erupt Over Autonomous Vehicle Safety
In San Francisco, drivers for Lyft and Uber protested against Waymo‘s self-driving taxis, demanding increased regulations on autonomous vehicles after incidents involving traffic disruptions and animal fatalities. The California Gig Workers Union has called for the removal of these vehicles until safety concerns are addressed, while Waymo maintains its commitment to safety.
Venezuelans Endure Economic Hardship
Despite Trump’s promises of an economic revival for Venezuela, the reality for locals remains dire. The International Monetary Fund estimates that Venezuela’s inflation rate stands at a staggering 682%, the highest globally. Many residents struggle to afford basic necessities, with around 80% of the population living in poverty.
Upcoming Trial for Luigi Mangione
Lastly, Luigi Mangione is slated to face a federal death penalty trial for the killing of UnitedHealthcare CEO Brian Thompson, potentially beginning before the end of this year. U.S. District Judge Margaret Garnett indicated that jury selection could start as early as September 8, 2025, depending on the status of the death penalty in the case.
These developments reflect ongoing dynamics in the U.S. economy, technological advancements, and international relations, illustrating the complex interplay of policy and public response.
