Trump Urges Support for Credit Card Competition Act to Curb Swipe Fees
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Legislative Advocacy: Trump urged support for the Credit Card Competition Act proposed by Republican Senator Roger Marshall on Truth Social, asserting that the legislation would help curb what he describes as 'out of control' swipe fees, highlighting a focus on consumer rights.
- Interest Rate Cap Proposal: Trump's suggestion to cap credit card interest rates at 10% triggered a strong market reaction, leading to significant declines in credit card and issuer stocks on Monday, reflecting investor concerns about the potential impacts of this policy.
- Market Reaction: Following Trump's interest rate cap proposal, stocks related to credit cards, such as American Express and Wells Fargo, experienced declines, indicating market expectations of negative effects on banks and the economy, with analysts generally believing this will impact consumers and overall economic health.
- Industry Impact: Analysts warn that the interest rate cap could adversely affect banks, the economy, and consumers, potentially leading to credit tightening that may hinder consumer spending and economic growth, reflecting the complexity and potential risks of implementing such policies.
Analyst Views on AXP
Wall Street analysts forecast AXP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXP is 351.42 USD with a low forecast of 280.00 USD and a high forecast of 400.00 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.
21 Analyst Rating
7 Buy
12 Hold
2 Sell
Hold
Current: 375.610
Low
280.00
Averages
351.42
High
400.00
Current: 375.610
Low
280.00
Averages
351.42
High
400.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
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.
