Trump’s 10% Credit Card Cap Plan Hit AmEx Stock Hard

Core Viewpoint - President Trump's proposed plan to cap credit card interest rates at 10% has significantly impacted the financial sector, leading to a decline in shares of banks and credit card companies [2][7] Group 1: Impact on Financial Institutions - The initial market reaction to the proposed cap appears to be exaggerated and driven by fear, as the cap is not yet guaranteed [2] - Major banks have expressed concerns regarding the potential negative effects of such a cap on their lending practices and overall profitability [5] - JPMorgan has indicated that the cap could restrict lending access to higher-risk borrowers, which may ultimately harm consumers and the economy [5][7] Group 2: Consumer Implications - While a 10% cap on credit card interest rates could provide relief to indebted consumers, the overall net effect may not be positive due to potential changes in lending practices [4] - Credit card issuers may need to find alternative ways to compensate for lost earnings from reduced interest rates, such as lowering rewards or increasing fees, which could adversely affect consumers [6][7]