President Donald Trump has announced a proposal to impose a one-year cap of 10% on credit card interest rates, a move that could save American consumers billions of dollars. This initiative revives a campaign promise but has already sparked significant opposition from the banking industry, which has generally supported Trump in the past. The proposal raises questions about whether it would be enacted through executive action or require legislative approval.
Trump indicated on social media that he hopes to implement the cap by January 20, 2025, the one-year anniversary of his inauguration. Currently, average credit card interest rates range from 19.65% to 21.5%. A Republican senator has stated that he has discussed the proposal with Trump and is prepared to work on a bill with the president’s backing.
Wall Street Hits New Highs Despite Job Market Concerns
Meanwhile, U.S. stock markets have reached record highs, with the S&P 500 rising by 0.6% on Friday. This increase follows a mixed report on the labor market released by the U.S. Labor Department. Despite the S&P hitting an all-time high, job growth figures fell short of economists’ expectations. Employers added only 50,000 jobs in December, slightly down from a revised 56,000 in November. However, the unemployment rate decreased to 4.4%, marking the first decline since June.
The lack of robust hiring has left many job seekers frustrated, even as layoffs and unemployment remain low. The report indicates that businesses are hesitant to expand their workforce despite signs of economic growth.
Controversy Surrounds Grok Chatbot and Image Restrictions
In another significant development, Elon Musk‘s AI chatbot, Grok, has begun restricting image generation capabilities following a global backlash over the creation of sexualized deepfakes. Reports emerged of explicit images involving women and even children, leading to widespread condemnation and investigations from governments around the world. As a response, Grok has limited these features to paying users on X, Musk’s social media platform. Critics, including officials from the United Kingdom, argue that these changes are not sufficient. The European Union has ordered X to retain documents related to Grok as part of a broader inquiry.
Economic Opportunities in Venezuela Amid Political Turmoil
President Trump is encouraging oil executives to invest in Venezuela, following the U.S. military operation aimed at capturing former leader Nicolás Maduro. Trump suggests that American intervention could lead to a revival of Venezuela’s oil industry and attract billions in private investment. During a meeting with oil industry leaders, he assured them that they would not face undue risks in returning to the country.
Yet, many Venezuelans struggle with an economy that the International Monetary Fund estimates has an inflation rate of a staggering 682%. This economic instability has resulted in severe food shortages and widespread poverty, with around eight in ten citizens living below the poverty line.
Legal Developments and Business Challenges
In the corporate sector, General Motors is facing approximately $6 billion in charges for the fourth quarter of the fiscal year. Sales of electric vehicles (EVs) have faltered due to the reduction of tax incentives and relaxed emissions standards. This follows an earlier announcement that the company would incur a $1.6 billion charge for similar reasons. The clean vehicle tax credit, worth up to $7,500 for new EVs, ended in September, complicating GM’s ambitious plans for electric vehicle production.
Additionally, protests have erupted in San Francisco as drivers for Lyft and Uber rallied against Waymo‘s self-driving taxis. They are calling for increased regulatory oversight following incidents involving the autonomous vehicles. The California Gig Workers Union is advocating for the removal of these vehicles until safety concerns are adequately addressed.
In New York, the federal death penalty trial of Luigi Mangione, accused in the murder of UnitedHealthcare CEO Brian Thompson, could start before the end of the year. U.S. District Judge Margaret Garnett indicated that jury selection may begin around September 8, 2027. However, the timeline could shift depending on the status of the death penalty in this case.
These developments highlight significant economic and social challenges facing both the U.S. and international communities, as various sectors navigate complex political and regulatory landscapes.
