SANTIAGO, Chile (AP) — Chilean Communist Jeannette Jara, the country's former labor minister, won the primary election for left-wing parties Sunday with surprising ease, beating out a more moderate rival to clinch over 60% of the vote.
The decisive upset makes Jara, 51, the candidate representing Chile's beleaguered incumbent government in November elections, set to face off against center-right and far-right contenders who have surged in the polls.
Because of term limits, the current leftist president, Gabriel Boric, 39, cannot run for a second consecutive term.
Jara, a lawyer and member of Chile's Communist Party who was Boric's labor minister before resigning to run for president, secured 60.5% of the vote. The runner-up who had been considered a favorite — former Interior Minister Carolina Toha from the traditional Democratic Socialist party — took 27.7%.
“Today begins a new path that we will walk together, with the conviction to build a fairer and more democratic Chile,” Jara wrote on social media. “In the face of the threat from the far-right, we respond with unity, dialogue and hope.”
After Boric's 2022 election, voting was made compulsory, adding unpredictability to this year’s race.
Preliminary turnout figures from electoral authorities showed that turnout was much lower than expected, with just 1.4 million people casting ballots. Chile has some 15.4 million eligible voters.
Although Jara's landslide win represents the rise of hard-liners within Boric's coalition, analysts have described Jara as less dogmatic and more diplomatic than some of her Communist peers. As labor minister, she earned praise for a program that increased minimum wage and reduced the working week to 40 hours.
She has earned comparisons to Michelle Bachelet, Chile's former center-left president and an icon of female empowerment who governed 2006 to 2010 and again from 2014 to 2018.
Paying tribute to Bachelet in her victory speech, she said: “She was the one who showed us the path that nothing is impossible.”
But Jara faces a tough climb to the top job. Recent opinion polls show the left-wing government declining in popularity at a moment of sluggish economic growth and rising fears over organized crime and migration in what has long been regarded as one of the region’s most stable and prosperous democracies.
Those hot-button issues have helped mobilize support for Chile's right-wing candidates, particularly ultraconservative lawyer and former lawmaker Jose Antonio Kast, and set the stage for a deeply polarized election.
Another favorite on the right is Evelyn Matthei, a former minister of labor whose business friendly policy proposals have charmed investors.
Chileans will go to the polls Nov. 16 to elect a president for the 2026-2030 term.
A voter leaves a booth after casting her ballot in primary elections held by the Unidad por Chile coalition to choose the ruling party's candidate for the upcoming presidential election, in Santiago, Chile, Sunday, June 29, 2025. (AP Photo/Esteban Felix)
People head to cast their ballots in the former Mapocho railway station during a primary held by the Unidos por Chile coalition to choose the ruling party's candidate for the upcoming presidential election, in Santiago, Chile, Sunday, June 29, 2025. (AP Photo/Esteban Felix)
Candidate Jeannette Jara, of the Communist party, embraces supporters before voting in primary elections held by the Unidos por Chile coalition to choose the ruling party's candidate for the upcoming presidential election, in Santiago, Chile, Sunday, June 29, 2025. (AP Photo/Esteban Felix)
NEW YORK (AP) — Reviving a campaign pledge, President Donald Trump wants a one-year, 10% cap on credit card interest rates, a move that could save Americans tens of billions of dollars but drew immediate opposition from an industry that has been in his corner.
Trump was not clear in his social media post Friday night whether a cap might take effect through executive action or legislation, though one Republican senator said he had spoken with the president and would work on a bill with his “full support.” Trump said he hoped it would be in place Jan. 20, one year after he took office.
Strong opposition is certain from Wall Street in addition to the credit card companies, which donated heavily to his 2024 campaign and have supported Trump's second-term agenda. Banks are making the argument that such a plan would most hurt poor people, at a time of economic concern, by curtailing or eliminating credit lines, driving them to high-cost alternatives like payday loans or pawnshops.
“We will no longer let the American Public be ripped off by Credit Card Companies that are charging Interest Rates of 20 to 30%,” Trump wrote on his Truth Social platform.
Researchers who studied Trump’s campaign pledge after it was first announced found that Americans would save roughly $100 billion in interest a year if credit card rates were capped at 10%. The same researchers found that while the credit card industry would take a major hit, it would still be profitable, although credit card rewards and other perks might be scaled back.
About 195 million people in the United States had credit cards in 2024 and were assessed $160 billion in interest charges, the Consumer Financial Protection Bureau says. Americans are now carrying more credit card debt than ever, to the tune of about $1.23 trillion, according to figures from the New York Federal Reserve for the third quarter last year.
Further, Americans are paying, on average, between 19.65% and 21.5% in interest on credit cards according to the Federal Reserve and other industry tracking sources. That has come down in the past year as the central bank lowered benchmark rates, but is near the highs since federal regulators started tracking credit card rates in the mid-1990s. That’s significantly higher than a decade ago, when the average credit card interest rate was roughly 12%.
The Republican administration has proved particularly friendly until now to the credit card industry.
Capital One got little resistance from the White House when it finalized its purchase and merger with Discover Financial in early 2025, a deal that created the nation’s largest credit card company. The Consumer Financial Protection Bureau, which is largely tasked with going after credit card companies for alleged wrongdoing, has been largely nonfunctional since Trump took office.
In a joint statement, the banking industry was opposed to Trump's proposal.
“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives," the American Bankers Association and allied groups said.
Bank lobbyists have long argued that lowering interest rates on their credit card products would require the banks to lend less to high-risk borrowers. When Congress enacted a cap on the fee that stores pay large banks when customers use a debit card, banks responded by removing all rewards and perks from those cards. Debit card rewards only recently have trickled back into consumers' hands. For example, United Airlines now has a debit card that gives miles with purchases.
The U.S. already places interest rate caps on some financial products and for some demographics. The Military Lending Act makes it illegal to charge active-duty service members more than 36% for any financial product. The national regulator for credit unions has capped interest rates on credit union credit cards at 18%.
Credit card companies earn three streams of revenue from their products: fees charged to merchants, fees charged to customers and the interest charged on balances. The argument from some researchers and left-leaning policymakers is that the banks earn enough revenue from merchants to keep them profitable if interest rates were capped.
"A 10% credit card interest cap would save Americans $100 billion a year without causing massive account closures, as banks claim. That’s because the few large banks that dominate the credit card market are making absolutely massive profits on customers at all income levels," said Brian Shearer, director of competition and regulatory policy at the Vanderbilt Policy Accelerator, who wrote the research on the industry's impact of Trump's proposal last year.
There are some historic examples that interest rate caps do cut off the less creditworthy to financial products because banks are not able to price risk correctly. Arkansas has a strictly enforced interest rate cap of 17% and evidence points to the poor and less creditworthy being cut out of consumer credit markets in the state. Shearer's research showed that an interest rate cap of 10% would likely result in banks lending less to those with credit scores below 600.
The White House did not respond to questions about how the president seeks to cap the rate or whether he has spoken with credit card companies about the idea.
Sen. Roger Marshall, R-Kan., who said he talked with Trump on Friday night, said the effort is meant to “lower costs for American families and to reign in greedy credit card companies who have been ripping off hardworking Americans for too long."
Legislation in both the House and the Senate would do what Trump is seeking.
Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., released a plan in February that would immediately cap interest rates at 10% for five years, hoping to use Trump’s campaign promise to build momentum for their measure.
Hours before Trump's post, Sanders said that the president, rather than working to cap interest rates, had taken steps to deregulate big banks that allowed them to charge much higher credit card fees.
Reps. Alexandria Ocasio-Cortez, D-N.Y., and Anna Paulina Luna, R-Fla., have proposed similar legislation. Ocasio-Cortez is a frequent political target of Trump, while Luna is a close ally of the president.
Seung Min Kim reported from West Palm Beach, Fla.
President Donald Trump arrives on Air Force One at Palm Beach International Airport, Friday, Jan. 9, 2025, in West Palm Beach, Fla. (AP Photo/Julia Demaree Nikhinson)
FILE - Visa and Mastercard credit cards are shown in Buffalo Grove, Ill., Feb. 8, 2024. (AP Photo/Nam Y. Huh, File)
