On Friday, Jan. 9, President Donald Trump sent credit markets tumbling with an announcement of his plan to limit credit card companies to a one-year 10% cap on the interest rate levels they can levy against customers. Currently, the national average credit card interest rate is 19.7% (and rates for subprime borrowers are much, much higher), per CNBC.
President Trump’s declaration that interest rates would cap at 10% for at least one year sent shares of Bank of America, Citigroup, JPMorgan Chase and Wells Fargo tumbling between 1% and 3%, CNBC reported. Other companies with even greater loan ties to the credit card industry, such as Capital One, saw shares spiral by almost 7%.
