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Trump Focuses on Housing and Credit Card Debt at Davos

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  Published in House and Home on Thursday, February 19th 2026 at 21:22 GMT by WCPO Cincinnati
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DAVOS, Switzerland (February 20, 2026) - President Donald Trump concluded a significant appearance at the World Economic Forum in Davos today, centering his address on a two-pronged approach to bolstering the American economy: tackling soaring housing costs and reducing the burden of credit card debt. The President framed these issues not just as domestic concerns, but as critical to maintaining America's global economic leadership.

Speaking to a packed auditorium of global leaders, business executives, and academics, Trump reiterated his long-held belief that deregulation and targeted tax cuts are the primary engines of economic growth. He painted a picture of a robust American economy, citing a consistently strong US dollar (currently trading at 1.15 EUR/USD) and the addition of 3.2 million jobs in the last fiscal year. "We've done a tremendous job, and we're going to continue to make it even better," he stated, echoing sentiments from his previous appearance at the forum in 2026. The President further pointed to a modest decrease in the national debt, attributing it to increased tax revenue generated by the economic boom.

However, Trump dedicated a significant portion of his speech to the increasingly pressing issue of housing affordability. He unveiled a new initiative, dubbed "Operation Homefront," which proposes a sweeping review of zoning laws and building codes at the federal level. The aim is to streamline the construction of new housing units, particularly single-family homes, by reducing bureaucratic hurdles and encouraging innovation in building materials. This initiative builds on previous efforts to incentivize state and local governments to reduce restrictive zoning regulations, but represents a more direct federal intervention. Experts suggest this is a response to growing criticism regarding the lack of affordable housing options, even in traditionally affordable areas.

"For too long, regulations have stifled construction and driven up the cost of homes," Trump argued. "We're going to unleash the builders and give American families the opportunity to own a piece of the American Dream."

The plan also includes proposals for expanded tax credits for first-time homebuyers, potentially reaching up to $25,000, and a program designed to encourage the development of modular and prefabricated housing, aiming to reduce construction time and costs. Critics, however, express concern that such tax credits could further inflate home prices without addressing the core issue of limited supply. They also point to the potential environmental impact of rapid, unchecked development.

Alongside the housing initiative, President Trump announced a renewed focus on curbing high credit card interest rates. He proposed legislation that would cap credit card APRs at 18%, significantly lower than the current average of 22.5%. This move, the administration argues, would provide much-needed relief to American consumers struggling with debt.

"American families are being crushed by predatory credit card rates," Trump declared. "We're going to put a stop to it."

The proposal is expected to face strong opposition from the financial industry, which argues that capping rates would reduce access to credit for those with lower credit scores and ultimately harm the economy. They also contend that market forces, not government intervention, should dictate interest rates. The American Bankers Association has already released a statement calling the proposal "misguided" and "potentially damaging."

This year's World Economic Forum discussions have been dominated by concerns surrounding global inflation, geopolitical instability (particularly in Eastern Europe and the South China Sea), and the accelerating pace of technological change. Trump's focus on domestic economic issues, while resonating with his base, has drawn some criticism for appearing disconnected from the broader global challenges.

Analysts note that the success of both "Operation Homefront" and the credit card rate cap will hinge on navigating complex legislative battles and overcoming resistance from vested interests. The long-term sustainability of these policies, and their overall impact on the American economy, remain to be seen. However, the President's commitment to these issues suggests they will continue to be central to his administration's economic agenda.