US EditionFinancial Stocks Fall as Trump's Credit Card Rate Cap Plan Rattles Investors
President Trump’s proposal to cap credit-card interest rates at 10% amid White House-Fed tensions caused credit-card stocks to drop by up to 7%, Wall Street data shows.
- On Monday, President Donald Trump proposed a cap on credit-card interest rates for a year, causing stocks of credit-card companies to tumble.
- The U.S. Department of Justice subpoenaed the Federal Reserve and threatened a criminal indictment over Jerome Powell's testimony, which Powell called `pretexts` in a Sunday video amid Fed-White House tensions.
- Across overseas markets, indexes rose with Hong Kong up 1.4% and Shanghai up 1.1%, while the U.S. dollar dipped and the 10-year Treasury yield increased to 4.19%.
- Facing potential leadership changes, Jerome Powell's term ends in May and officials signaled a replacement could be named this month as President Donald Trump seeks to remove Lisa Cook and urges lower rates.
- Such independence gives the Fed leeway to make unpopular moves, and last year it cut the Fed's main interest rate three times, shaping expectations for more cuts this year.
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Klarna CEO backs Trump’s 10% credit card cap, criticizing rewards as built on poorer borrowers’ debt
Klarna CEO Sebastian Siemiatkowski said President Donald Trump’s plan to cap credit card interest rates for a year makes sense. Spencer Platt/Getty Images Klarna’s CEO backs Trump’s one-year plan to cap credit card interest rates. Sebastian Siemiatkowski says high rates trap lower-income borrowers in costly debt. He says credit card rewards mainly benefit wealthier consumers. Klarna CEO Sebastian Siemiatkowski has expressed support for Presiden…
Credit Card Interest Rate Cap Sparks Debate in the U.S.
Credit Card Interest Rate Cap Sparks Debate in the U.S. U.S. banks and financial institutions are pushing back against President Donald Trump's recent proposal to impose a 10% cap on credit card interest rates. They argue such a move would lead to millions of American households and small businesses losing access to credit.President Trump's call for a cap comes amid pressure to address cost-of-living concerns. Financial groups, taken off-guard, …
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