Financial Giants Warn Trump's 10% Credit Card Rate Cap Will Backfire
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: Benzinga
- Economic Slowdown Warning: Citigroup CFO Mark Mason highlighted during a call that Trump's proposed 10% credit card interest rate cap would lead to a significant economic slowdown, impacting high-risk borrowers' access to credit and potentially triggering broader economic issues.
- Decline in Credit Availability: JPMorgan CFO Jeremy Barnum stated that the rate cap would dramatically alter credit service provision, particularly affecting low-income consumers who would lose extensive access to credit, resulting in severe negative consequences.
- Threat to Credit Ecosystem: Delta Air Lines CEO Ed Bastian warned that the cap could upend the entire credit card industry, restricting lower-end consumers' access to credit and jeopardizing the rewards and loyalty programs relied upon by millions of travelers.
- Credit Limits vs. Affordability: Bank of America CEO Brian Moynihan emphasized that lowering the rate cap would inevitably restrict credit availability, reducing the balances accessible to credit cardholders, necessitating a balance between affordability and credit access.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 47.900
Low
55.00
Averages
61.64
High
71.00
Current: 47.900
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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