Trump Proposes Credit Card Rate Cap; Banks to Voluntarily Offer New Cards
Written by Emily J. Thompson, Senior Investment Analyst
Source: stocktwits
- Credit Card Rate Cap: President Trump proposed a one-year 10% cap on credit card interest rates to alleviate consumer burdens, especially ahead of the midterm elections, potentially impacting banks' profit models.
- Voluntary Card Offering: White House economic advisor Hassett stated that major U.S. banks could voluntarily provide credit cards to underserved Americans to support Trump's affordability push, with expectations that legislation may not be necessary.
- Regulatory Changes Expected: Under the Credit Card Competition Act, the Federal Reserve is expected to issue new regulations within a year, restricting banks with assets over $100 billion from limiting the number of networks for electronic credit transactions, which could pressure large banks like JPMorgan and Citigroup.
- Market Sentiment Reaction: Retail sentiment for Visa and Mastercard trended towards 'extremely bullish' amid high message volume, while JPMorgan also showed 'extremely bullish' sentiment, and Citigroup remained in 'bullish' territory, indicating optimism in the credit card sector.
Analyst Views on C
Wall Street analysts forecast C stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for C is 115.10 USD with a low forecast of 104.50 USD and a high forecast of 134.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 117.460
Low
104.50
Averages
115.10
High
134.00
Current: 117.460
Low
104.50
Averages
115.10
High
134.00
About C
Citigroup Inc. is a global diversified financial services holding company. The Company’s segments include Services, Markets, Banking, Wealth and U.S. Personal Banking (USPB). The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade and working capital solutions to multinational corporations, financial institutions and public sector organizations. The Markets segment provides corporate, institutional and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products and commodities. The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses. The Wealth segment includes Private Bank, Wealth at Work and Citigold and provides financial services to a range of client segments. USPB segment includes branded cards and retail services.
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.
