Shares in banks and credit card firms fell after former U.S. President Donald Trump called for a cap on credit card interest rates. In a Friday post on Truth Social, Trump proposed limiting interest rates to 10% for one year, starting January 20, 2026.
The proposal impacted financial markets, with UK bank Barclays, which has a significant U.S. credit card business, seeing its shares fall by 3.5%. U.S. firms including American Express, Visa, and Mastercard also experienced declines in early trading.
Trump's statement revived an idea he had previously floated during his 2024 presidential campaign. "Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10," he wrote.
U.S. banking associations responded to the proposal by stating that capping rates would restrict access to credit and negatively affect millions of families and small businesses. These associations argue that such a cap could disrupt the credit market, making it more difficult for individuals and small businesses to obtain necessary financing.
The average interest rate for credit cards in the U.S. is currently around 20%. The proposed cap of 10% represents a significant reduction, which could impact the profitability of credit card issuers and potentially alter their lending practices.
It remains unclear how such a cap would be implemented or whether it would be legally enforceable. Trump did not specify the mechanisms for introducing the cap or address potential legal challenges. The lack of specifics has contributed to uncertainty in the financial markets.
The potential impact on consumers is a key point of contention. Supporters of the cap argue that it would provide financial relief to individuals burdened by high-interest debt. Opponents contend that it could lead to reduced credit availability, particularly for those with lower credit scores, and could potentially increase fees or other charges associated with credit cards.
The current status of the proposal is uncertain, pending further details and potential legislative or regulatory action. The financial industry is closely monitoring developments and assessing the potential implications for their businesses and consumers.
AI-Assisted Journalism
This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.
Deep insights powered by AI
Continue exploring
NASA has launched the Pandora mission to enhance the capabilities of the James Webb Space Telescope in the search for habitable exoplanets. Pandora, a smaller satellite, will work in tandem with Webb to analyze the chemical composition of distant planetary systems, seeking signs of water vapor, carbon dioxide, and methane.
Despite explicit Google Play Store policies prohibiting apps that generate non-consensual or sexualized imagery, particularly of children, Elon Musk's Grok AI app remains available with a "Teen" rating. This discrepancy highlights a lack of enforcement by Google, contrasting with Apple's stricter but less explicitly defined app content restrictions, raising concerns about platform responsibility and user safety.
The Supreme Court is set to review the FCC's authority to issue fines, specifically regarding a case where major carriers were penalized for selling customer location data without consent, raising questions about the agency's power and potential Seventh Amendment implications. This legal challenge could reshape the regulatory landscape for telecommunications, impacting how the FCC enforces consumer privacy and data protection rules in an era increasingly reliant on AI-driven data collection and analysis.
Pompeii's public baths, preserved by the eruption of Mount Vesuvius in 79 CE, offer insights into the city's evolving water management. A new study analyzing calcium carbonate deposits reveals a shift from reliance on rainwater and wells to a more complex aqueduct system, reflecting advancements in Roman engineering and urban development. This transition likely improved hygiene and public health in the bustling port city, a key hub in the ancient Mediterranean world.
Nvidia's Rubin platform introduces rack-scale encryption, a major advancement in AI security by enabling confidential computing across CPUs, GPUs, and NVLink, addressing the growing threat of cyberattacks on increasingly expensive AI models. This technology allows enterprises to cryptographically verify security, moving beyond reliance on trust-based cloud security, which is crucial given the rising costs of AI training and the increasing frequency of AI model breaches.
The Trump administration's EPA is considering a policy shift that would disregard the health benefits of reducing air pollution when making regulatory decisions, potentially reversing decades of established practice that factors in the economic value of human life. This change could have significant implications for public health, as it may lead to weaker regulations on pollutants like ozone and fine particulate matter, both of which are linked to serious cardiovascular ailments. The move raises concerns about the future of environmental protection and the role of AI in assessing the true cost-benefit analysis of environmental regulations.
Semantic caching, which focuses on the meaning of queries rather than exact wording, can drastically reduce LLM API costs by identifying and reusing responses to semantically similar questions. Traditional exact-match caching often fails to capture these redundancies, leading to unnecessary expenses, but implementing semantic caching can increase cache hit rates and significantly lower LLM bills.
Anthropic's Cowork, now in research preview for Max subscribers, simplifies AI-driven file management by allowing Claude to interact with designated folders through a user-friendly chat interface. Built on the Claude Agent SDK, Cowork offers a less technical alternative to Claude Code, opening up possibilities for non-coding tasks like expense report generation while raising considerations for managing AI autonomy.
Pebble's founder, Eric Migicovsky, is launching Core Devices, focusing on a sustainable business model for a Pebble smartwatch reboot and an AI ring, avoiding the pitfalls of traditional venture-backed startups. Core Devices aims for profitability from the outset, leveraging lessons learned from Pebble's acquisition by Fitbit, by carefully managing inventory and foregoing external funding. This approach signals a shift towards long-term viability in the consumer electronics space, prioritizing measured growth over rapid expansion.
Multiple news sources report that MacKenzie Scott donated $45 million to The Trevor Project, a nonprofit supporting LGBTQ youth, marking their largest single donation ever and a critical boost following increased demand for services and the Trump administration's closure of related federal counseling programs. This donation aims to expand the organization's reach and address the heightened mental health challenges and political hostility faced by LGBTQ young people, who have experienced increased suicidal ideation.
Anthropic has unveiled Claude for Healthcare, a suite of AI tools designed to streamline healthcare processes for providers, payers, and patients, mirroring OpenAI's ChatGPT Health announcement. Claude distinguishes itself with connectors that allow access to crucial databases, potentially accelerating research and administrative tasks, though concerns remain about the reliability of AI-driven medical advice.
GoFundMe is facing scrutiny for hosting a fundraiser for an ICE agent who fatally shot a civilian, potentially violating its own policy against supporting legal defenses for violent crimes. This raises questions about the platform's content moderation and the ethical implications of crowdfunding in cases involving law enforcement and civilian deaths, highlighting the challenges of applying AI-driven content policies consistently. The FBI is currently investigating the shooting.
Discussion
Join the conversation
Be the first to comment