Ex-Reagan official trashes Trump devotee for defending administration’s 'crony capitalism'

American hedge fund manager and billionaire Bill Ackman took to X on Saturday to comment on President Donald Trump's claim that he would cap all credit card interest rates at 10 percent as of Jan. 20, 2026. However, a former Ronald Reagan Cabinet secretary encouraged Ackman to stop sucking up to Trump.

"I think President @realDonaldTrump’s goal of reducing credit card interest rates is a worthy and important one. My concern about capping rates at 10 percent is that doing so will inevitably cause millions of Americans to have their cards cancelled as credit card companies lose the ability to adequately price subprime credit risk," Ackman wrote.

"Consumers denied credit cards will be forced to turn to loan sharks whose rates and terms will be vastly worse for borrowers. While 20 percent or more is a high rate, loan sharks can charge multiples of these rates, and the cost of default can be physical harm or worse," Ackman continued.

There is currently no federal cap on credit card interest rates, and a Forbes reporter last year reported that the average interest rate was 28.6 percent. Trump suggested the idea during the campaign, but in his first year did nothing to make it happen. So, Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) proposed legislation on the matter in Feb. 2025. It was never passed.

Ackman swears he has no credit card investments, so he isn't an "expert," but the market for cards seems "highly competitive."

"The best way to bring down rates would be to make it more competitive by making the regulatory regime more conducive to new entrants and new technologies. I commend the President for his focus on affordability for all Americans. Mortgage spreads and rates are coming down significantly due it his actions. Finding a way to bring down credit card rates without taking credit away from many Americans would have a very positive impact on the most disadvantaged Americans," he claimed.

David Stockman, who was Reagan's Secretary of the Office of Management and Budget during the first term, told Ackman, "stop kissing his a——."

"When it comes to economics he's an unhinged whirligig of statist humbug, hoo-doo and ham-handed hammering of free markets and economic liberty," Stockman said, bashing Trump.

"The very idea of government intervention in the credit card market is neither 'worthy' nor 'important.' It's just a stupid attempt to address the real affordability problem that is caused by massive deficits and endless money-printing at the Fed — both of which the Donald wants more of. The truth is, there is absolutely nothing redeeming about the dog's breakfast of protectionism, easy money, Keynesian deficits and crony capitalism that passes for Trump-O-Nomics," he closed.