Overview
- President Trump called for a one-year 10% ceiling on credit-card interest starting January 20 and warned holdouts could be “in violation of the law,” though no enforcement mechanism was specified.
- Bank and payments stocks slid on the announcement, with sharp drops for Capital One and declines for JPMorgan, Citi, Bank of America, Visa, Mastercard, and American Express.
- Major trade groups warned the cap would restrict credit, citing an Electronic Payments Coalition analysis projecting closures or severe limits for 82%–88% of accounts tied to credit scores below 740 and cuts to rewards with higher fees.
- A Vanderbilt Policy Accelerator study estimated roughly $100 billion in annual consumer savings under a 10% cap, while analysts forecast tighter underwriting and reduced access for higher-risk borrowers.
- The path forward points to Congress, with Sen. Elizabeth Warren telling Trump she would work on legislation as banks prepare lobbying and potential legal challenges.