#USA. President **Donald Trump just announced a proposed one-year cap on credit card interest rates at 10%, effective January 20, 2026 — the first anniversary of his current administration. The move hit markets late Friday, sparking volatility and fresh debates around consumer lending and financial stocks.
What Just Happened
• Trump posted on Truth Social calling for a temporary 10% APR ceiling on credit card interest rates, citing skyrocketing current rates (often 20–30%+) as “ripping off” American consumers.
• The proposal is largely rhetorical for now — he didn’t lay out enforcement mechanisms or regulatory pathways, and such a cap would need Congressional approval to become law.
• The White House also didn’t clarify how issuers might comply or be compelled.
Market & Financial Sector Impacts
Banks & Lenders
• Financial stocks immediately priced in uncertainty — if enacted, lower rates could compress net interest margins and profitability.
• Major issuers (AmEx, JPMorgan, Bank of America, Capital One, Citi) have not publicly commented yet.
Credit Markets
• A 10% cap could dramatically cut interest revenue and reduce the cost of carrying consumer debt — but only if passed and enforced.
• Industry critics warn caps could lead cards being cancelled or tighten credit access for riskier borrowers.
Volatility Ahead
• Expect increased trading activity in bank stocks, credit ETFs, and interest-rate-sensitive assets when markets open Monday.
• Crypto traders often treat macro credit cost shifts as a bellwether for risk sentiment — risk assets may see knee-jerk swings.
Political & Practical Reality Check
• Analysts and lawmakers across parties say Trump’s announcement lacks legal force without legislation.
• Similar 10% cap bills have been floated in Congress before but never passed.
• Critics — including Senator Elizabeth Warren and industry voices — call the move symbolic without enforcement details.
