Summary
President Donald Trump announced a plan to cap credit card interest rates at 10% for one year starting January 20, 2026. This proposal led to a drop in bank and credit card company shares. Lawmakers and banking groups say the cap would need Congress' approval and might limit credit access.
Key Facts
- President Trump plans to limit credit card interest rates to 10% for a year, starting January 20, 2026.
- The announcement caused shares in banks and credit card firms to drop.
- Notable drops include Barclays shares falling 3.5% and declines for American Express, Visa, and Mastercard.
- Banking associations argue that the cap could reduce credit availability for families and small businesses.
- U.S. lawmakers state that a cap requires Congress to pass a bill.
- In 2025, the Trump administration removed a regulation limiting credit card late fees.
- A joint statement from five banking bodies expressed concern that such a cap could push consumers to more expensive credit options.
- Billionaire Bill Ackman highlighted risks of card cancellations due to companies being unable to price credit risk adequately.
