President Trump’s call to cap credit card interest rates at 10% for a year sent shockwaves through Wall Street on Monday, weighing down bank stocks as investors recoiled from a proposal that threatens the industry’s most lucrative profit engine.
President Trump’s call to cap credit card interest rates at 10% for a year sent shockwaves through Wall Street on Monday, weighing down bank stocks as investors recoiled from a proposal that threatens the industry’s most lucrative profit engine.
Shares of JP Morgan Chase had dropped nearly 7% as of midday Monday while Capital One fell 6.5% and Citigroup slid over 3% as investors dumped lenders with heavy exposure to high-interest consumer credit in the wake of Trump’s remarks.
Visa fell over 5% while American Express dropped 4.5% and Mastercard dipped about 2% as investors extended the selloff beyond card issuers to the payment networks amid fears a rate cap could choke off spending and transaction volumes.
The selloff followed a Truth Social post late Friday in which Trump called for a one-year cap on credit card rates to take effect Jan. 20, saying Americans were being “ripped off” as borrowing costs hover near record highs.
“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%,” he announced. “Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration.
