US EditionBank Stocks Fall After Trump Proposes 10% Credit Card Rate Cap
Trump’s proposed 10% cap on credit card interest rates aims to reduce borrowing costs but risks lower credit availability, with major bank shares falling sharply on U.S. markets.
- This coming week, the Administration plans to issue an executive order imposing a temporary 10% cap on credit card interest rates, marking breaking news amid market reactions.
- Trade associations including the American Bankers Association said they share the President's goal of helping Americans access more affordable credit, representing a $25.1 trillion industry safeguarding $19.7 trillion in deposits and extending $13.2 trillion in loans.
- Stocks slid Monday as Citi Group lost almost 4% in premarket trading and JPMorgan Chase fell 3%, with Bank of America, Visa, Mastercard, Wells Fargo, and PayPal also declining.
- Analysts and industry groups warn a 10% cap would reduce credit availability and be devastating for millions of American families and small businesses, while they look forward to working with the Administration.
- The cap would come into force on Jan. 20, according to a Truth Social post on Friday, and the Financial Services Forum includes the eight largest U.S. financial institutions as key stakeholders.
136 Articles
136 Articles
JPMorgan Chase Warns Trump Rate-Cap Proposal ‘Very Bad for Consumers’
JPMorgan Chase warned on Jan. 13 that President Donald Trump’s proposal for a one-year cap on credit card interest rates would be “very bad for consumers.” On an earnings call with analysts and reporters, JPMorgan Chase CFO Jeremy Barnum pushed back against the president’s idea, saying it would backfire and reduce credit availability. “If it were to happen, it would be very bad for consumers, very bad for the economy,” Barnum said. “Our belief i…
Trump's ‘Affordability’ Ideas Drive Capitol Hill Talks
President Donald Trump has rapidly presented new economic ideas in recent days, shaping congressional discussions while giving some Republican members pause. One of Trump’s proposals that turned the most heads was his urging credit card companies to cap interest rates. “We will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during t…
Can Trump's proposed 10% credit card interest rate cap really happen?
President Trump took to social media to announce a one-year cap on credit card interest rates at 10%, effective Jan. 20th. But can it really happen?Current rates nearly double the proposed capCurrently, the average credit card interest rate is nearly 23% so a 10% cap would be a significant change. Experts say it's not as simple as the president says, and that several steps need to be taken first.Congressional approval requiredIncline Wealth's Jo…
A possible alliance between Trump and Congress, as rarely, could have the effect of limiting credit card interest to 10%: how it would benefit you
Trump's Credit Card Cap Could Hurt Consumers, Mastercard Stock Tumbles - Mastercard (NYSE:MA)
Mastercard Inc (NYSE:MA) shares are taking a dip on Tuesday as credit card stocks retreat following comments from JPMorgan Chase CFO Jeremy Barnum, who warned that President Donald Trump's proposed cap on credit card interest rates would ultimately hurt consumers and the broader economy.
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