US EditionBoston College Economist Weighs in on President Trump’s 10% Credit Card Interest Cap Proposal
Banks warn a 10% interest cap could limit credit access, while some fintech leaders support it to protect consumers from high debt, amid mixed business reactions.
- On Friday, President Donald Trump proposed a one-year 10% cap on credit card interest and set a Jan. 20 deadline for lenders to comply, warning violations would be illegal.
- Citing persistent high card rates, the proposal responds to card interest rates above 20% in recent years and President Donald Trump's claim that banks were 'ripping people off' with rates around 20% or 30%.
- JPMorgan CFO Jeremy Barnum warned `Specifically, people will lose access to credit, like on a very, very extensive and broad basis, especially the people who need it`,
- Investors punished cards-and-bank stocks as American Express fell just shy of 7% and Delta Air Lines dropped 1.1% to $68.60, while Ed Bastian warned the cap could threaten loyalty programs.
- Given past stalls on Capitol Hill, Congress holds authority, yet fintechs like SoFi see openings as Anthony Noto said, `Consumers, however, will still need access to credit. That creates a large void one that @SoFi personal loans are well positioned to fill.
12 Articles
12 Articles
Bank of America sends strong message on interest-rate cap
Bank of America (BAC) just sent a clear message to Washington following renewed talk of capping credit-card interest rates at 10%. CEO Brian Moynihan didn’t mince words, saying that although the idea may sound consumer-friendly, a hard cap will likely…
Boston College economist weighs in on President Trump’s 10% credit card interest cap proposal
Professor Robert Murphy, chair of the economics department at Boston College, joined Kerry Kavanaugh on Boston 25 News Now at 3 p.m. to talk about how feasible President Donald Trump's suggested credit card interest proposal really is and what some unintended consequences could come as a result.
Trump calls for a 10% cap on credit card rates in his latest appeal to affordability concerns
By Luciana Lopez, CNN (CNN) — President Donald Trump on Friday called for a one-year, 10% cap on credit card interest rates, saying the American public is being “ripped off” in a Truth Social post. Trump called for the cap to come into effect on January 20, the one-year anniversary of his return to the
Trump’s 10% Credit Card Cap Plan Hit AmEx Stock Hard
Quick Read Trump’s proposed 10% credit card rate cap triggered a 7% decline in American Express shares. JPMorgan warns the cap could restrict lending access to higher-risk borrowers. Credit card issuers may offset lost interest income by cutting rewards or raising fees. That could also weigh heavily on the consumer. Amazon Prime members: Do not miss this bonus President Trump’s proposed plan to cap credit card rates at 10% have sent big wave…
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