Sanders, Hawley Push for 10% Credit Card Interest Cap

Evening Analysis • Saturday, October 31, 2026

The Gist View

Senator Bernie Sanders, a Vermont independent, and Senator Josh Hawley, a Missouri Republican, both back a 10% cap on credit card interest, and Bloomberg reports candidates in both parties now campaign on it. Federal Reserve data put average card rates above 20%. The promise is cheap: a cap needs 60 Senate votes, so candidates can pledge it without ever having to pass it.

The costs fall on voters nobody courts. Borrowers with the weakest credit default most often, and no lender profits from them at 10%. Expect lower limits and closed accounts for them, and fewer rewards for everyone else, since issuers fund points from interest and merchant swipe fees.

Lenders have escaped caps before. After the Supreme Court’s 1978 Marquette ruling let national banks charge their home-state rates nationwide, Citibank moved its card business to Sioux Falls, South Dakota, in 1981, once the state had scrapped its own ceiling.

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The Global Overview

Credit card rates become the one issue both parties share

Candidates from both parties are campaigning on credit card interest rates, according to Bloomberg, because control of Congress rests on a handful of razor-thin races. Households carrying card debt pay the highest borrowing costs most of them face, so the issue reaches voters who feel prices rising faster than pay. Banks earn the most from this debt, so any rate cap would shift income away from lenders. Rep. Gregory Meeks told Bloomberg that affordability would be House Democrats’ first priority if they win the majority.

Prediction markets keep missing election upsets

The WSJ reports that betting markets were upset by supposed long shots in recent votes in Brazil, Serbia and Wisconsin. Polling remains the main input for these markets, so weak polls produce wrong odds. Traders and campaigns that treat those odds as signals could be misled going into the midterms.

Merz is caught off guard by Asian anger over “Made in Europe” cars

Politico reports that German Chancellor Friedrich Merz said he was “surprised” by East Asian pushback to a Franco-German plan restricting car subsidies. The plan favors vehicles built in Europe, which protects European plants and workers. It also puts Asian exporters at a disadvantage in the EU market. Seoul, Tokyo and others now have reason to bargain over access.

A rare local ceasefire lets Oleshky evacuees reach Ukraine

The FT reports that a humanitarian mission pulled hundreds of people out of Russian-occupied Oleshky during a local ceasefire. Such pauses are rare, and they show Moscow and Kyiv can still agree on narrow, short-term terms. Meeks also said companies importing Russian diesel could face congressional scrutiny if Democrats win the House.

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The European Perspective

France’s cost-of-living protests shrink, but the government adds curfews

320,000 people marched across France on Saturday, according to the Interior Ministry. 70,000 of them were in Paris. Turnout has fallen from 550,000 on 17 October to 410,000 the previous Saturday (ZDF). The demands are lower living costs and better public schools and services. Authorities imposed curfews in some areas overnight, a security response that comes before any budget concession.

The falling crowds help the government’s bargaining position. Spending on schools and prices is a budget decision, and the protests have not yet changed it.

Energy costs are moving into shop prices

Germany’s ifo institute, an economic research body, says its price-expectations index rose to 22.7 in September from 21.4 in August. The index measures how many firms plan price increases. The ifo expects fuel and heating oil costs to reach households first. Electricity and gas tariffs are likely to follow this winter. Wollmershäuser, the ifo’s head of economic research, expects inflation to exceed 3% in the coming months (ifo). Gas and power prices hit their highest level since late 2022 in mid-September, and crude rose again after the Bab al-Mandab strait was blocked. Energy suppliers and shippers gain. Households and firms that cannot pass on costs lose.

Kallas opposes a Putin return to the G20

The EU’s foreign policy chief Kaja Kallas said that Putin attending the December G20 summit in Florida risks normalizing war crimes (Politico). She also rejected reported Pentagon requests that allies soften their criticism of the Kremlin. Meanwhile, civilians evacuated from occupied Oleshky crossed into Ukraine via Belarus in a deal brokered by Melania Trump. The Kherson ceasefire ends Sunday evening (ZDF).

Burnham offers an apology but not reparations

UK Prime Minister Andy Burnham said he is “open” to a formal state apology for the slave trade. He rejected financial reparations and proposed a structured dialogue ahead of the Commonwealth summit starting Sunday (Politico). The offer gives Commonwealth governments a diplomatic gesture while keeping Treasury exposure at zero.

Non-obvious angle: Germany’s organ shortage may be partly a logistics problem

The Charité in Berlin is testing machines that keep donor livers warm and perfused with red-blood-cell fluid, rather than on ice. This lets surgeons assess livers for longer and could identify more usable organs (ZDF).

Biodiversity talks end without a funding deal

UN nature talks in Yerevan ended with renewed pledges but no agreement on payment, as wealthy nations declined to release funds (Politico).

Catch the next Gist for the continent’s moving pieces.

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