U.S. Bank Stocks Fall As Investors Weigh Credit Card Rate Cap Deadline
HuffPost • • general
Key Points:
- U.S. bank stocks declined amid uncertainty over the Trump administration's January 20 deadline to impose a 10% cap on credit card interest rates, sparking investor concern about potential impacts on the banking sector.
- The administration argues the cap will improve consumer affordability, while banks warn it could reduce credit availability by limiting their ability to price risk on unsecured loans.
- Major banks including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo saw share price drops, with JPMorgan considering possible legal action against the policy.
- The proposed interest rate cap is part of broader tensions between the Trump administration and the banking industry, which includes allegations of restricted financial services and scrutiny of Federal Reserve Chair Jerome Powell.
- Analysts suggest
