Trump's credit card rate cap shakes up Wall Street
Donald Trump just proposed capping credit card interest rates at 10% for a year, starting January 20, 2026.
Right after the announcement, big bank stocks like JP Morgan Chase and Capital One dropped sharply—nearly 7% and 6.5%.
Why does this matter?
If it goes through, Americans could save about $100 billion in interest payments next year.
But banks warn it might mean smaller credit limits for many people and make it tougher for those with lower credit scores to get approved.
What's the bigger story?
Trump's idea is part of a broader push from both parties to make borrowing more affordable.
Bipartisan bills proposing a credit card rate cap were introduced last year but did not advance.
Still, banking groups argue these changes could limit access to credit for families and small businesses who need it most.