Credit Card Interest Rate Cap: What's the Deal?

Big changes might be coming to credit card interest rates. President Donald Trump recently suggested a temporary limit on these rates. He wants a 10% cap for one year, starting in January 2026. This news didn't sit well with banks and financial companies. Their stock prices dropped on Monday. Citi Group saw a nearly 4% decrease in early trading. JPMorgan Chase wasn't far behind, with a 3% loss. Bank of America fell by 2. 45%, while Visa and Mastercard also saw declines of 1. 58% and 2%, respectively.Other financial services felt the ripple effect. Wells Fargo lost 2%, and PayPal dipped by 0. 26%. The proposed cap was announced on Truth Social. However, details on how this would work remain unclear. Trump's announcement echoes a promise he made during his 2024 presidential campaign. He aims to protect consumers from high interest rates. But will this cap really help or just cause more problems? Only time will tell.