Credit Card Interest Rate Cap Causes Sell-Off
The President called for a 10% cap on credit card interest rates
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- Written by Banking Exchange staff
Credit Card and other financial services stocks started the week lower as the President called for a 10% cap on credit card interest rates.
Shares of Capital One had the largest drop of close to 10% before the opening bell on Wall Street, whereas Visa and Mastercard stocks were both down about 2%. Large bank stocks were also negatively impacted.
President Trump stated, “Effective January 20, 2026, I, as President of the United States, am calling for a one-year cap on Credit Card Interest Rates of 10%.”
Congress would need to approve a bill in order for the cap to take effect, but it does have some bipartisan support.
However, lenders have long argued that consumers will simply take the burden as they would lose access to much-needed short-term credit.
President Trump seems to be declaring war on credit card companies though in an effort to look as if he is addressing the affordability issue taking center stage in politics.
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