Trump's Credit Card Cap: Winners and Losers
- Ishfaaq Peerally
- Jan 12
- 1 min read
Trump's Credit Card Cap: Winners and Losers
Financial stocks are down today after President Trump announced capping interest rates on credit cards at 10%.
While this may look like a good thing for consumers on the surface, it can have unintended consequences, affecting the whole financial market.
Winners and losers
The most affected companies would be the banks (the issuers) since they are the ones actually making money from interest. There's this idea that card networks such as Visa and Mastercard won't be affected. But that's not true. If interest rates are capped, it means fewer credit cards are issued and fewer transactions occur.
The biggest winners might be payday loan and BNPL providers.
But can President Trump do this?
I answered this question and many more on my Substack post:
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