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The average interest rate on credit cards is higher than 15% for the first time since 2001, according to the Federal Reserve. If you just look at cards carrying a balance, the rate is almost 17%. And the average interest rate on retail cards is more than 25%.

Expand chart
Source: Federal Reserve via FactSet; Chart: Axios Visuals 

Driving the news: Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez have introduced a bill that would cap credit card interest rates at 15%.

The big picture: Credit cards are a particularly insidious form of credit, often filled with what Elizabeth Warren calls "tricks and traps." By bundling a loan with a very convenient payments device, banks deliberately make it easy to rack up large debts and interest charges. Capping rates at 15% would significantly reduce unintentional consumer indebtedness.

  • Capping credit card interest rates would force banks to start unbundling their lending activities from their payment-card services.

My thought bubble: It's fine for lenders like Affirm to charge simple interest rates higher than 15% when borrowers are deliberately borrowing a specific amount for a specific purpose. Consumer credit is a public good — but loans should be entered into intentionally.

Go deeper

Updated 3 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: WHO: AstraZeneca vaccine must be evaluated on "more than a press release."
  2. Politics: McConnell temporarily halts in-person lunches for GOP caucus.
  3. Economy: Safety nets to disappear in DecemberAmazon hires 1,400 workers a day throughout pandemic.
  4. Education: U.S. public school enrollment drops as pandemic persists.
  5. Cities: Surge in cases forces San Francisco to impose curfew — Los Angeles County issues stay-at-home order, limits gatherings.
  6. Sports: NFL bans in-person team activities Monday, Tuesday due to COVID-19 surge — NBA announces new coronavirus protocols.
  7. World: London police arrest more than 150 during anti-lockdown protests — Thailand, Philippines sign deal with AstraZeneca for vaccine.

Tony Hsieh, longtime Zappos CEO, dies at 46

Tony Hsieh. Photo: FilmMagic/FilmMagic

Tony Hsieh, the longtime ex-chief executive of Zappos, died on Friday after being injured in a house fire, his lawyer told the Las Vegas Review-Journal. He was 46.

The big picture: Hsieh was known for his unique approach to management, and following the 2008 recession his ongoing investment and efforts to revitalize the downtown Las Vegas area.

Dan Primack, author of Pro Rata
15 hours ago - Economy & Business

The unicorn stampede is coming

Illustration: Annelise Capossela/Axios

Airbnb and DoorDash plan to go public in the next few weeks, capping off a very busy year for IPOs.

What's next: You ain't seen nothing yet.

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